Economic impact of UK’s STEP plant assessed

Friday, 21 March 2025

Economic impact of UK's STEP plant assessed
A cutaway of the STEP fusion plant (Image: UKAEA)

In October 2022, the West Burton coal-fired power plant site in Nottinghamshire, England, was selected to host the UK’s Spherical Tokamak for Energy Production (STEP). The demonstration plant is due to begin operating by 2040. The technical objectives of STEP are: to deliver predictable net electricity greater than 100 MW; to innovate to exploit fusion energy beyond electricity production; to ensure tritium self-sufficiency; to qualify materials and components under appropriate fusion conditions; and to develop a viable path to affordable lifecycle costs. As well as the STEP fusion facility, a skills centre and a business park are planned.

The report, written by economic and finance specialists Amion Consulting, covers a timeframe of more than 45 years, from when planning began in 2019, through to 2065. However, the majority of these benefits are expected to be from 2030 onwards.

Analysts created an economic model to predict the key economic benefits that will be generated by STEP. These benefits include the jobs linked directly to the project and the lucrative contracts for local and national supply chains. This research also takes into account the wider benefits to the local economy such as more disposable income for Nottinghamshire residents thanks to the creation of better-paid jobs.

The report identifies other key benefits for Nottinghamshire including a forecasted annual average of more than 1,000 new construction related jobs, which will boost the county’s economy by GBP86 million (USD111 million) each year. Meanwhile, the number of operational jobs due to be created is predicted to be around 2760 each year, which will bring an average annual economic boost worth GBP210 million for Nottinghamshire.

For the East Midlands region as a whole, an average of 2,976 construction, planning and design-related jobs are due to be created each year, bringing an average GBP236 million annual boost for the region’s economy. An average of 6,440 new operational jobs are set to boost the East Midland’s economy by around GBP489 million annually.

Working closely with UK Industrial Fusion Solutions (UKIFS) – a wholly-owned subsidiary of the UK Atomic Energy Authority that will deliver STEP – Nottinghamshire County Council commissioned the report on behalf of key partners, including Bassetlaw District Council, Lincolnshire County Council and West Lindsey District Council.

“This is the first examination of the positive economic impacts of the STEP programme across the region and beyond,” said UKIFS CEO Paul Methven. “It gives a fascinating insight into the potential for STEP to deliver direct economic and social benefits and stimulate much wider opportunities across many sectors. We look forward to supporting regional leaders in driving these opportunities regionally and enabling economic growth nationally.”

“We already knew this once-in-a-lifetime project would create massive growth, investment and skills, but now we know the full extent of it,” added Keith Girling, Nottinghamshire County Council’s Cabinet Member for Economic Development and Asset Management. “This is incredible news for our county and the region, particularly for our future generations who will really reap the benefits. This report now provides us with crucial insight and sets a benchmark to help partners plan for future investment as well as environmental and economic policies in that area.”

A summary report of the study is .

   

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