A policy report from the Fusion industry Association (FIA) argues that the UK needs to do more to implement a policy framework which can capture the economic opportunities coming from fusion. The new report notes that while the UK is regarded as a world-leading marketplace for fusion, only 20% of the organisation’s members feel certain the UK will become a strategically significant supply chain centre as the global market blooms. Global fusion companies, responding to a FIA survey, say they plan to collectively spend well over £1bn ($1.26bn) in the next five years and by 2029, developers plan to make final investment decisions for at least 12 major fusion facilities. Many, says the FIA, could be in the UK at Culham, West Burton, and other centres of fusion excellence. Each investment could create long-term financial commitments, workforce growth, spin-out potential, supply chain opportunities, and tax revenues. However, while 65% of fusion companies surveyed by the FIA are considering establishing or enhancing their UK businesses, and a further 30% are open to doing so if the conditions are right, the FIA recommends the UK government introduce a series of measures to foster these developments.
The FIA’s calls on the government to collaborate with industry by publishing a renewed fusion strategy, which includes a fusion taskforce co-chaired between industry & government. It also recommends giving STEP greater freedom over its own procurement and allowing STEP suppliers to retain IP to encourage development of innovative technologies that will benefit the industry as a whole. The FIA further suggests setting up an independent body to support companies to navigate the process of applying for fusion grants. The goal being to maximise the economic impact of current public programmes to stimulate fusion. In a third recommendation the FIA says the government should create clear processes for delivering private fusion projects and establish a government-endorsed framework for planning and approval of private fusion projects, to streamline the process and provide confidence to companies. Finally, the FIA says the government should establish a clear, stable market framework for deploying commercial fusion. Such a framework need not be overly complicated and can include existing measures such as Contracts for Difference and Regulated Asset Base. It is critical that these are stated clearly, with no room for uncertainty, and that the process for establishing this framework begins soon, ahead of major investment decisions in the late 2020s that will define the future of fusion.
Commenting Andrew Holland, Chief Executive Officer of the FIA says “It’s important that [the UK] establishes the best possible framework to prevent it from losing its lead before it can reap the commercial opportunities… if the UK can persuade a few of these companies to commit to UK facilities, it can capture a significant share of this huge near and long-term economic opportunity, while also securing its legacy as a leader in fusion. Holland concludes: “The next five years are crucial. The UK must act swiftly to take advantage of its decades of investment in fusion and its global leadership on policy frameworks, to ensure it retains and expands its lead in this transformative industry.”
