Skip to site menu Skip to page content

ILIOS consortium secures $265m contract for Step Fusion programme

The first phase aims to deliver all essential infrastructure for the STEP Fusion energy plant by 2029.

Anwesha Pattanaik March 17 2026

UK Fusion Energy has awarded the contract to design and build the infrastructure for the Spherical Tokamak for Energy Production (STEP) fusion programme in Nottinghamshire to the ILIOS consortium, led by Nuvia, a subsidiary of VINCI Construction.

The agreement, valued at £200m ($265m) over four and a half years, covers the initial phase of development and involves the design and construction of all buildings, infrastructure and site facilities at West Burton.

The remaining members of the ILIOS consortium include Kier, AECOM, AL_A and Turner & Townsend.

STEP Fusion, funded by the Department for Energy Security and Net Zero, aims to establish a commercially viable fusion power plant by 2040.

UK Fusion Energy, previously known as UK Industrial Fusion Solutions and a wholly owned subsidiary of the UK Atomic Energy Authority (UKAEA), is overseeing delivery.

The power plant will be located at the former West Burton A coal power station near Retford and Gainsborough.

The project is expected to generate up to 8,000 on-site jobs during peak construction.

It forms part of a broader programme that could reach a value of up to £10bn in future phases and supports government objectives for long-term energy security and decarbonisation.

The scope of work for the ILIOS consortium includes responsibility for site management, programme planning, supply chain management, project controls and ensuring compliance with all relevant requirements.

The partners’ combined experience draws on previous involvement in significant national infrastructure projects, civil engineering within high-hazard sectors, nuclear facility delivery and complex scientific environments.

UK Fusion Energy CEO Paul Methven said: “The appointment of ILIOS as our Construction Partner marks a significant milestone for the STEP Programme.

“Their combined experience in major infrastructure, safety critical engineering and complex site transformation gives us real confidence as we move from planning into delivery.”

Notably, VINCI Construction companies are also engaged in construction activities at ITER in Cadarache, France.

STEP’s design is based on magnetic confinement fusion using hydrogen isotopes, deuterium and tritium, heated to temperatures exceeding 150 million degrees Celsius to produce energy, which is converted into electricity via steam turbines.

The UK government recently announced £2.5bn investment in fusion research, signifying ongoing support for clean energy development strategies.

The selection of West Burton as the project’s location was confirmed in 2022.

Beyond its immediate construction impact, STEP is intended to lay the groundwork for a future fusion energy sector able to meet higher energy demands in the coming decades.

ILIOS programme director Simon Matthews said: “Through our involvement on the STEP programme, we will help advance the UK’s future energy resilience and decarbonisation ambitions, supporting economic and regional growth, high-quality jobs and the development of a long-term, UK-based, fusion supply chain.”

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close