Sustainable aviation fuel plant confirmed for Teesside

Saudi Arabian company Alfanar has reaffirmed its commitment to invest £2 billion in a new sustainable aviation fuel (SAF) facility on Teesside, in a move that is expected to create thousands of jobs and bolster the UK’s green industrial ambitions.

The Lighthouse Green Fuels plant will be developed at the North Tees industrial cluster and will convert more than 1.5 million tonnes of biomass waste into up to 180 million litres of SAF annually. This output could fuel 25,000 short-haul or 2,500 long-haul flights each year.

The announcement follows a trade visit to Riyadh by Tees Valley Mayor Ben Houchen, who met with senior Alfanar leadership, including Vice-Chairman Sabah Al Multaq, to secure the commitment. The Mayor also pledged to champion the project with the UK Government to support its progression through planning and funding stages.

Construction of the facility is expected to generate more than 2,000 jobs, with 240 permanent roles once the plant is operational. The plant will also connect to carbon capture and storage infrastructure currently being developed off the Teesside coast by the Northern Endurance Partnership. This will enable the project to avoid over 750,000 tonnes of carbon dioxide emissions annually.

“This is outstanding news for Teesside,” said Mayor Houchen. “Lighthouse Green Fuels puts our region at the forefront of a growing global industry. It’s another example of how we’re attracting transformative investment that creates jobs and drives long-term economic growth.”

The project is part of a broader effort to position Teesside as the UK’s hub for low-carbon aviation fuel production. In 2022, Alfanar received nearly £40 million in funding from the Department for Transport’s Advanced Fuels Fund, alongside four other SAF initiatives in the region.

The North Tees site is part of the Teesside Freeport, the UK’s largest and most advanced Freeport zone. The area is increasingly attracting global investment in low-carbon technologies and infrastructure, supported by its established industrial base, skilled workforce, and port connectivity.

Lighthouse Green Fuels further strengthens the region’s role in the UK’s net-zero strategy, combining clean energy innovation with job creation and international collaboration.