Saudi Arabian Investment Fuels £2 Billion Sustainable Aviation Fuel Plant in Teesside

In a significant boost to the UK's low-carbon ambitions, Saudi Arabian firm Alfanar has committed to investing £2 billion in a sustainable aviation fuel (SAF) plant at the North Tees industrial cluster. This ambitious Lighthouse Green Fuels project is set to transform over 1.5 million tonnes of sustainably sourced biomass waste into up to 180 million litres of sustainable jet fuel annually, enough to power 25,000 short-haul or 2,500 long-haul flights.

During a recent visit to Riyadh, Tees Valley Mayor Ben Houchen secured this substantial investment from Alfanar, meeting with senior executives, including Vice Chairman Sabah Al Multaq. Houchen hailed the commitment as a landmark moment for Teesside's ambition to lead in the burgeoning sustainable aviation sector. The development is projected to create more than 2,000 jobs during construction and an additional 240 full-time positions once operational.

The Lighthouse facility will also integrate with the Northern Endurance Partnership’s carbon capture and storage (CCS) network, which is being developed off the Teesside coast. This connection is anticipated to prevent over 750,000 tonnes of carbon dioxide emissions annually, aligning with the UK's climate goals. With nearly £40 million in government support from the Department for Transport's Advanced Fuels Fund, the plant exemplifies a growing trend in renewable energy investments, positioning Teesside as a central player in the low-carbon aviation fuel market.

However, the project is not without its challenges, as it will need to navigate typical industrial hurdles such as securing final investment decisions, planning consents, and establishing reliable supply chains. Critics of biomass-derived fuels raise concerns about the sustainability of feedstock sourcing, while proponents argue the potential for decarbonization in hard-to-electrify sectors like aviation.

Local officials advocate for Teesside’s robust industrial infrastructure and emerging CCS network as key advantages to attract further low-carbon investments. If successful, the Lighthouse Green Fuels plant will join a cluster of initiatives aimed at establishing the area as a leader in energy transition and green manufacturing.

Alfanar, a diversified company with a broad portfolio in energy and engineering, has yet to provide a detailed timeline for the project, but the commitment signals a transformative period for the region. Mayor Houchen emphasized that this development represents a pivotal moment for Teesside, which is poised for massive expansion and investment in the years ahead.