The UK STEP Program Awards a $95M Magnet Program

by Michael Heumann | Apr 21, 2026 | Fusion Energy

Tokamak Energy Wins Contract; Joins Commonwealth Fusion Systems as a Magnetic Systems Vendor

This month, the UK’s Tokamak Energy won a £70M ($95M US) contract to build high-temperature superconductor (HTS) magnets to the UK Fusion Energy Limited (UKFE) Spherical Tokamak for Energy Production (STEP) program. In doing so, Tokamak Energy joined Commonwealth Fusion Systems (CFS) as a premier magnetics vendor to commercial fusion systems developers. The Fusion Report is covering this development because it represents a major expenditure by a government-sponsored commercial fusion energy program, as well as the development of the European fusion supply chain ecosystem, specifically for magnets, and one that is independent of the US fusion and industrial supply chain.

What is The UK STEP Program?

STEP is the UK’s major technology and infrastructure program to build a prototype fusion powerplant through public and private cooperation. The prototype power plant will be based on a spherical tokamak design, like the one shown in the picture above. The goal of the STEP program is to demonstrate net energy generation, achieve fuel self-sufficiency, and demonstrate a viable path to workable plant maintenance. It is an endeavor that encompasses design, site development, construction approaches, and the development of supply chain logistics.

STEP is going to be implemented in three phases over roughly the next fifteen years, at a site in West Burton, Nottinghamshire, UK. Phase 1, which started in 2024, focuses on a conceptual design of the power plant as well as the design requirements for each of the major systems. The second phase focuses on component manufacturing of the major critical systems and technologies. Major contracts for contract partners, including the plant construction partner and the critical systems partners, are being awarded right now. The third phase is the construction of the plant, which will start in the early 2030s, with a goal of commencing power plant first operation in 2040. 

The STEP Plan for Magnetic Engineering, Innovation, and Delivery

“Confirming our position in the UK’s world-leading fusion program is a proud day for Tokamak Energy. HTS magnets are a transformative technology essential for delivering energy-producing fusion devices like STEP and unlocking new levels of performance in other sectors,” said Warrick Matthews, CEO of Tokamak Energy. “Our expertise and experience include operating two of the most advanced fusion machines of today and will be invaluable as we scale up in partnership towards a low carbon, secure energy future.”

The Tokamak Energy agreement with UKFE includes naming it as the systems partner for delivering the magnetics packages, tokamak systems, and plasma integration. The contract also provides continued use of Tokamak Energy’s ST40 prototype fusion machine, a compact, high field spherical tokamak that recently delivered record levels of plasma current and energy performance. UKFE awarded the £70 million contract covering the period up to March 2029, after identifying Tokamak Energy as the leading UK-based manufacturing expert with the specialist capabilities to deliver the magnetic systems required for STEP.

Dan Bishop, Chief Commercial Officer at UKFE, said: “This partnership is about delivering together. Tokamak Energy brings the complementary skills, facilities and experience to move at pace. Our mission to deliver the STEP program objectives is enhanced by this partnership.”

Why the STEP Program is Important for the UK

There are several reasons why this program is important for STEP and for the UK: 

  • Combines complementary expertise
    UKFE leads the delivery of STEP at whole plant scale, while Tokamak Energy brings decades of private sector innovation in high field magnets and spherical tokamaks. Together they create a delivery capability neither could achieve alone, especially at required program pace. 
  • Provides direct access to operational high field testbeds
    ST40 and Demo4 allow live testing of plasma scenarios, magnetic geometries and integrated coil loads which are significantly faster and more informative than simulation only approaches. 
  • Reduces risk in advanced magnet development
    Fusion requires exceptionally strong, stable magnetic fields. Early validation of cooling systems, structural integrity, quench behavior and multi-coil interactions reduces risk in one of the most challenging areas of STEP’s design. 
  • Accelerates STEP program milestones
    The partnership enables rapid prototyping, earlier technology verification and a smoother transition from concept into full engineering design. 
  • Strengthens UK sovereign capability
    Tokamak Energy is the UK’s only specialist manufacturer of high field HTS magnet technology, securing critical domestic capability and reducing dependence on global supply chains.

Conclusion: The UK is Moving Forward on Commercial Fusion

While STEP’s 2040 first operation date may be slightly behind those of the U.S. commercial fusion development companies of the early- to mid-2030s, it is a solid plan with significant monies behind it. More importantly, it’s steps towards awarding contracts for critical systems are on schedule. Similar programs are occurring between the TVA and Type One Energy in Tennessee, not to mention CFS’s ARC fusion machine in Virginia, Helion’s next-generation Orion fusion machine in Malaga, Washington, and TAE’s Copernicus and DaVinci next-generation fusion machines. If even some of these are successful, the mid 2030s to early 2040s should be a very exciting time for commercial fusion energy!