Prince Charles visits the UK Atomic Energy Authority's centre in Culham, Oxfordshire, to see how fusion energy could play a vital role in addressing climate change. Getty Images
Prince Charles visits the UK Atomic Energy Authority's centre in Culham, Oxfordshire, to see how fusion energy could play a vital role in addressing climate change. Getty Images
Prince Charles visits the UK Atomic Energy Authority's centre in Culham, Oxfordshire, to see how fusion energy could play a vital role in addressing climate change. Getty Images
Prince Charles visits the UK Atomic Energy Authority's centre in Culham, Oxfordshire, to see how fusion energy could play a vital role in addressing climate change. Getty Images

UK plans multibillion fusion power plant to tackle climate crisis as energy bills soar


Nicky Harley
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The UK is pushing forward with plans to identify a site for a multibillion-pound fusion power plant to create affordable energy around the world.

It comes as the British government revealed households will face a £693 ($942) rise in typical energy bills when the price cap is raised in April.

The UK Atomic Energy Authority (UKAEA) believes fusion energy could play a vital role in addressing climate change through a safe, sustainable and low-carbon future energy supply.

It has shortlisted five sites across the UK to create a multibillion-pound prototype fusion machine which could create fusion energy to be distributed across the globe.

The Spherical Tokamak for Energy Production (Step) programme is seeking to pave the way for the development of commercial power plants, capable of supplying a limitless supply of low carbon, clean energy.

On Wednesday, scientists behind the project unveiled their plans to hundreds of people in Goole, East Yorkshire, which is one of the shortlisted communities.

Tristram Denton, head of commercial and programme development for Step, said the project is of global importance.

“Step is not just of strategic importance to UKAEA, but to the national and global efforts to harness fusion technology in the fight against climate change," he said.

"While it’s still early days, we anticipate that the host region will become a global hub for a wide range of technological and scientific expertise, leading to massive economic opportunities.

"We think that Step will be a key part in the UK and world’s efforts to decarbonise and we are incredibly excited to bring the project forward.

"My energy bills are going in the same direction as everyone else’s. This should bring forward an affordable source of energy for everyone. We are trying to develop a prototype to prove the technology and from the back of that, we would expect to see a whole fleet of fusion plants globally once the technology is proved to be operable.

"The whole world is going to get a source of energy which is potentially vital in fighting climate change and providing energy at an affordable price."

The site will be chosen by the end of the year, with construction taking place by 2030 and aims to be operational by 2040.

The project will create more than 1,000 jobs, 5 per cent of which will be apprenticeships.

Step strategic adviser, Leon Flexman, said the power station will be a prototype.

"The mission of Step is to deliver a UK prototype fusion energy plant by 2040 and the path to commercially viable fusion," he said.

"It will not be operating as a power station. It is really there as a stepping stone between the experimental fusion that we have now and the commercial operating plants that we hope to roll out across the UK and the globe.

Prince Charles meets employees at the Joint European Torus control room during a visit to the UK Atomic Energy Authority. Getty Images
Prince Charles meets employees at the Joint European Torus control room during a visit to the UK Atomic Energy Authority. Getty Images

"We know that we can run fusion machines safely and that we can generate energy from them but we want to prove that this can be done on a basis that could be a power industry, not just an experiment.

"The goal is to generate more power than we put in."

Mr Denton said the project will form part of the UK's net zero plans.

“The UK government is committed to net zero by 2050 and fusion is one part of the long-term solution, alongside a continued increase in energy from renewable sources like wind and solar power," he said.

"The recent Cop26 climate conference highlighted the need to push harder and faster and Step takes us ever closer to making fusion a reality.”

On Monday, Prince Charles visited UKAEA's Joint European Torus machine in Culham, which is the largest and most powerful operating tokamak machine in the world.

The machine creates fusion energy by recreating the same type of nuclear reaction that powers the Sun.

How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

Ordinary Virtues: Moral Order in a Divided World by Michael Ignatieff
Harvard University Press

Points tally

1. Australia 52; 2. New Zealand 44; 3. South Africa 36; 4. Sri Lanka 35; 5. UAE 27; 6. India 27; 7. England 26; 8. Singapore 8; 9. Malaysia 3

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Updated: February 04, 2022, 3:33 AM