The United Kingdom has taken a step toward its energy future by investing £20 million in the development of fusion energy – a technology that promises an almost unlimited source of clean and safe energy. This investment comes through the launch of the Starmaker One fund, the UK’s first private investment fund dedicated to fusion, with one of its key investors being the government itself. On April 3, the government announced this £20 million contribution, effectively opening the door for further investments.
What is fusion, really?
Fusion is the process by which the Sun and stars produce energy – by fusing light atoms (like hydrogen) into heavier ones (like helium), releasing a tremendous amount of energy in the process. Unlike fission (nuclear) power plants that split atoms, fusion produces no long-lived radioactive waste and carries no risk of catastrophic accidents. Though it has been under research for decades, commercial use of fusion has not yet been achieved – but many believe the world is getting close.
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A Fund That Opens the Door to Private Investment
The Starmaker One fund is structured as a limited partnership and will be managed by an investment arm of the London-based firm East X. The goal is to raise between £100 million and £150 million to invest in fusion-related technologies – including automation, artificial intelligence, robotics, magnets, healthcare, transport, and energy storage.
What makes this fund unique is that it is the first venture capital fund dedicated to fusion outside of the United States, and the first to directly involve a national government as an investor. The initial investment, drawn from the UK’s 2024/2025 research and development budget, is expected to spur additional investment from the private sector, according to the UK government’s website.
The government notes that British fusion companies often face difficulties accessing capital, which hinders their ability to scale and move from research to commercialization. Through this fund, financing will be made available to small companies, training will be offered in physics, engineering, and chemistry, and new technologies with broader applications will be developed.
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