The British economy has gained £1.4 billion from the Government’s
direct investment in fusion energy over the past decade and an
average of 4,000 jobs each year.
The findings were revealed in an economic study conducted
by London Economics and released today by the Department for
Business, Energy and Industry Strategy.
London Economics looked at the financial and economic impacts of
the UK’s public investments in the UK Atomic Energy Authority’s
(UKAEA’s) fusion research from 2009-2019 and found:
- Allocated funding of £346.7 million resulted in a direct gain
of £1.4 billion
- For every £1 invested in UKAEA, approximately £4 is generated
in return
- Approximately 36,900 direct and indirect job years were
created through direct employment and related activities –
equivalent to the creation of 4,000 jobs on average each year
- The UK economy gained up to £363.7 million from contracts
directly won by UK organisations for the international fusion
megaproject, ITER
- UKAEA’s contribution to understanding of fusion energy was
identified to be significant, with UKAEA having increased the
volume, quality and reputation of UK fusion and related research.
Without UKAEA, the field of fusion research in the UK would
likely be heavily fragmented with far less cooperation
- Advances to “fusion-adjacent” technologies through technology
transfer from fusion. These include advancements in robotics,
developments of new materials and contributions to computing and
artificial intelligence. Future applications are expected in
other fields, such as space exploration, mining and healthcare,
and transport.
- Indirect benefits in upskilling of the UK workforce through
an improvement in skills, knowledge transfer between academia and
industries, improved fusion reactor designs and the creation of
standards for fusion and contribution to public policy and
strategy.
Fusion energy is a form of low-carbon energy whereby the power of
the sun is replicated on earth.
At equal mass to traditional energy sources, fusion energy
releases nearly four million times more energy than the burning
of coal, oil or gas, and four times as much as nuclear fission
reactions.
It promises minimal impact to the environment, long-term
reliability and weather independence.
In addition to the direct benefits listed in the report, fusion
research is expected to deliver numerous additional economic
gains, such as market, network and knowledge spillovers, which
arise when economic activities in one part of a market have
effects elsewhere.
The study provides strong evidence that there are already
significant benefits flowing from the UK Government’s investment
in fusion.
This points to significant future benefits to the UK economy from
further development, demonstration and commercialisation of
fusion technology over the coming decades.
Since the report was compiled, the UK Government has announced
£220 million of funding for UKAEA’s Spherical Tokamak for Energy
Production (‘STEP’) fusion power plant programme.
Professor Ian Chapman, UKAEA CEO, said: “The report highlights
much that is positive about UKAEA’s work.
“However, this is just the tip of the iceberg with regards to
UKAEA’s capabilities and fusion energy’s projected contribution
to our shared economic, ecological and social future.
“Fusion energy research and development needs long-term and
large-scale investments.
“There are substantial benefits fusion research and development
can deliver not only to the economy, but also to the UK’s net
zero target by 2050, which means going beyond the decarbonisation
of electricity.
“Our mission is to lead the delivery of sustainable fusion energy
and maximise scientific and economic benefit.”
