A US nuclear fusion start-up backed by Microsoft co-founder Bill Gates has announced plans to build the United Kingdom’s first commercial fusion power plant within the next decade, positioning the UK alongside global competitors in the race to develop viable fusion energy.

Type One Energy has partnered with the US engineering firm Aecom and UK-based fusion specialist Tokamak Energy to design and develop a 400-megawatt commercial facility. The project, based on Type One’s existing concept for a US public energy provider, aims to complete the generator by the mid-2030s—a notably accelerated timeline for the UK fusion sector.

Chris Mowry, chief executive of Type One, indicated that discussions with potential UK customers are in preliminary stages, underscoring the company’s ambition to enter the British energy market with fusion technology. Fusion power, unlike traditional nuclear fission, generates electricity by combining atomic nuclei, offering the potential for abundant and clean energy, though it has yet to be commercialized at scale.

Despite the UK’s historic contributions to fusion research dating back to the 1940s, domestic investment in the technology has lagged behind that of the United States and China. The UK government has pledged £2.5 billion for fusion research over five years, including an initial £1.3 billion allocated for a prototype reactor known as Step. However, this level of funding remains modest compared to investments in China and the US, prompting a shift in some British start-ups’ strategies.

For instance, Tokamak Energy, which has raised approximately $335 million, has pivoted toward manufacturing advanced superconducting magnets for other fusion developers rather than pursuing its own commercial reactors. Another UK company, First Light Fusion, abandoned plans to build a self-funded commercial plant last year, citing technical and financial challenges. Chief Executive Mark Thomas described such projects as a “very big undertaking,” noting that only a few companies globally have reached that stage, given the multi-billion dollar investments required.

First Light Fusion is now focusing on alternative reactor designs and forming partnerships to finance its goals. The company projects it could reach profitability within four to five years through non-fusion business activities, aiming to establish a sustainable financial foundation independent of fusion developments.

Meanwhile, fusion research and commercialization efforts in the US and China continue to accelerate. The Chinese government is making substantial investments to become a global leader in fusion technology. US companies benefit from significant backing by major technology corporations and influential investors, including Microsoft, Google, and tech entrepreneur Sam Altman.

Commonwealth Fusion Systems, a leading American developer, has amassed approximately $3 billion in funding and targets the construction of its first commercial fusion plant in the early 2030s. Google has committed as a customer to purchase power from the project once operational.

As international efforts intensify, the UK’s fusion industry faces pressure to bridge funding gaps and reduce development timelines to remain competitive in what many regard as a potential cornerstone for future clean energy production.