Teesside’s ambitions to lead the UK’s low-carbon revolution have been handed a sizeable boost, with Saudi Arabian investor Alfanar confirming plans for a £2bn sustainable aviation fuel (SAF) plant at the North Tees industrial cluster. The Lighthouse Green Fuels project will convert around 1.5 million tonnes of waste biomass into up to 180 million litres of SAF each year—enough, by the developer’s estimates, to power roughly 25,000 short-haul or 2,500 long-haul flights.
The scheme promises scale and speed in a market racing to decarbonise flight. By producing drop-in fuels compatible with existing aircraft and airport infrastructure, SAF is widely seen as the most immediate route to cutting lifecycle emissions from aviation while newer propulsion technologies mature. Locating a large-format plant in the Tees Valley ties production into an industrial ecosystem already geared towards energy, chemicals and advanced manufacturing.
Alfanar’s commitment follows a trade mission to Riyadh by Tees Valley Mayor Ben Houchen, who met senior company figures including vice-chairman Sabah Al Multaq while promoting the Teesside Freeport to international investors. “It is outstanding news that Alfanar has committed to delivering this project on Teesside,” said Houchen. “Developments such as Lighthouse Green Fuels put our region at the forefront of a growing industry which is primed for massive expansion.”
Jobs and local supply chains stand to benefit. More than 2,000 roles are expected during construction, with ongoing opportunities in operations, maintenance and logistics once the plant is live. For contractors and suppliers, the project points to high-value packages spanning civils, process engineering, storage, utilities and grid connections, as well as specialist control and safety systems typical of complex process plants.
A defining feature of the development is its planned link to carbon capture and storage (CCS). Lighthouse Green Fuels will connect to the Northern Endurance Partnership’s CO₂ transport and storage network being developed off the Teesside coast, enabling the capture and permanent sequestration of process emissions. The integration is projected to avoid more than 750,000 tonnes of CO₂ a year and underscores Teesside’s emerging role as a UK hub for CCUS-enabled industry.
Public backing has helped de-risk the early phases. The Department for Transport has already awarded the scheme £40m through its Advanced Fuels Fund, recognising Lighthouse Green Fuels as one of several strategic projects putting Teesside on the UK map for low-carbon aviation fuels. The Freeport designation adds further appeal, with potential tax and customs incentives that can improve project viability and accelerate delivery.
The choice of a waste-biomass feedstock reflects a push towards fuels that deliver credible carbon savings without direct competition with food crops. It also opens the door to regional partnerships on waste aggregation and pre-processing, creating a circular-economy supply chain that can grow alongside the plant. As the market evolves, close attention will fall on traceability, lifecycle accounting and the robustness of emissions verification—areas where large, integrated projects can set a benchmark.
While precise construction milestones are yet to be confirmed, the scale of the investment, the CCS hook-up and the Freeport location together signal a project designed to anchor a new industrial chapter for Teesside. If delivered as planned, Lighthouse Green Fuels would materially expand the UK’s domestic SAF capacity, support thousands of jobs, and help airlines cut emissions without waiting for an entirely new fleet or fuel system.
For a region reshaping its industrial identity around net-zero growth, the message is clear: Teesside isn’t just courting the future of clean industry—it is building it, at scale, on the banks of the Tees.
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