London: Global project development and engineering group Alfanar has secured a key site for its Lighthouse Green Fuels (LGF) project in Teesside, marking a major step forward in the development of one of Europe’s most advanced sustainable aviation fuel (SAF) plants.
The company announced on July 1 that it had signed a land option agreement for the Seal Sands site on the mouth of the River Tees, paving the way for the multibillion-pound project. The facility is expected to become one of the world’s largest second-generation SAF plants and the UK’s first new refinery to be built since the 1960s, Biomass Magazine reported.
The Seal Sands location will support the complete SAF production process, from biomass feedstock pre-treatment to fuel production and storage. Its proximity to existing industrial infrastructure and the Teesside carbon capture and storage (CCS) network is expected to enable low-carbon operations while providing scope for future expansion.
Once operational, the facility is expected to produce 180 million litres of sustainable aviation fuel and 30 million litres of renewable naphtha annually using sustainably sourced biomass, including forestry and agricultural residues.
Alfanar said integrating carbon capture and storage into the project could enable the production of carbon-negative aviation fuel, reducing lifecycle greenhouse gas emissions by more than 200% compared with conventional jet fuel. With CCS, the project could contribute around 46% of the UK’s Sustainable Aviation Fuel Mandate on a greenhouse gas emissions basis, compared with about 20% without carbon capture, while improving the country’s long-term fuel security.
The project has now entered an advanced stage of development. Front-End Engineering Design (FEED) was completed at the end of May, and the company has secured all core technology licences.
Planning and environmental approvals are progressing through the Development Consent Order (DCO) process ahead of a final application expected later this summer. The project has also been selected by the Department for Environment, Food and Rural Affairs (Defra) as a pilot under its Lead Environmental Regulator programme, which aims to streamline environmental approvals for nationally significant infrastructure projects.
Alfanar has also applied for connection to the Teesside carbon capture and storage network while continuing commercial discussions with biomass suppliers and potential SAF customers.
The company said it has invested approximately £90 million in the project so far and expects to commit an additional £100 million before reaching a Final Investment Decision (FID) and financial close, targeted by the end of 2027.
Construction is expected to begin in 2028, with commercial production scheduled to start in 2031.
Alfanar UK Country Head Noaman Al Adhami said the land agreement represents another significant milestone for the project and provides the foundation for developing one of the world’s most advanced SAF facilities.
He said the investment would strengthen the UK’s resilience to global fuel market disruptions while supporting economic growth, innovation and skilled employment in the Teesside region.
Chris McDonald, Member of Parliament for the area, said the project reflects Teesside’s industrial strengths and has the potential to establish the region as a leading centre for sustainable aviation fuel production.
He described the investment as a major boost for the local economy and said it could help position both Billingham and the UK at the forefront of the global SAF industry.
