UKAEA Awards £10 Billion STEP Construction Partner Contract to ILIOS

The UK’s ambitious clean energy programme has reached a significant milestone with the award of the STEP Construction Partner contract by the UK Atomic Energy Authority (UKAEA). The contract, valued at approximately £10 billion, has been awarded to ILIOS, marking a major development in the delivery of the Spherical Tokamak for Energy Production (STEP) initiative in the United Kingdom.

Major Contract Award for UK Fusion Energy Programme

According to the published contract award notice, UKAEA selected ILIOS as the STEP Construction Partner for one of the country's most strategically important energy infrastructure projects. The contract was formally awarded on 2 April 2026 and will run until 31 March 2029.

The procurement was managed by UKAEA from its Culham Campus headquarters in Abingdon, Oxfordshire. The contract covers construction partnership services supporting the STEP programme, which aims to advance fusion energy technology and position the UK as a global leader in sustainable power generation.

With a reported contract value of £10 billion, the award represents one of the most substantial government-backed energy and infrastructure contracts announced in recent years.

Project Scope and Strategic Importance

The STEP programme is designed to demonstrate the commercial viability of fusion energy, a technology widely regarded as a potential long-term solution for delivering low-carbon, large-scale electricity generation. The construction partner will play a critical role in supporting project planning, engineering coordination, infrastructure development, and delivery activities associated with the programme.

The contract is applicable across the United Kingdom and is expected to generate significant economic benefits through supply chain opportunities, job creation, engineering innovation, and investment in advanced energy technologies.

Winning Contractor: ILIOS

ILIOS, headquartered in Salford, United Kingdom, secured the contract following a competitive procurement process. The company's appointment highlights its capabilities in delivering large-scale infrastructure and construction management services for complex projects.

The award further strengthens ILIOS' position within the UK's infrastructure and energy sectors, particularly as government investment in next-generation energy technologies continues to expand.

Looking Ahead

As the STEP programme moves into its next phase, the partnership between UKAEA and ILIOS is expected to accelerate progress toward the UK's fusion energy ambitions. The project will be closely watched by industry stakeholders, policymakers, and investors as a potential blueprint for future clean energy infrastructure developments.

The contract award underscores the government's commitment to innovation, energy security, and achieving long-term net-zero objectives through advanced nuclear fusion technologies.

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