Lighthouse Green Fuels (“LGF”) will process up to 1 million tonnes of nationally sourced biogenic and non-biogenic wastes and residues per year, which makes it the largest advanced SAF facility in Europe. By converting waste streams into second-generation sustainable aviation fuel using readily available feedstocks, LGF is positioned to decrease UK's reliance on imported fossil fuels, thereby significantly enhancing the nation’s energy security.

The Advanced Fuels Fund (“AFF”) grant will support LGF's advancement into the latter phase of the Front-End Engineering Design (“FEED”) stage, which is expected to be completed in Q4 2024.

This initiative aligns with the Department for Transport's efforts to unlock the environmental and economic advantages of fostering UK SAF market. The UK’s domestic SAF industry is projected to add a gross value added (“GVA”) of up to £1.8bn annually by 2035, facilitate significant job creation, and provide national fuel security.

The £1.5 billion facility is expected to commence construction in 2025 and start full commercial operation in 2028, creating over 1,200 jobs locally. This consequential investment into Teesside’s socio-economic development extends beyond direct job creation; Alfanar will utilise and leverage the existing local supply chain throughout the plant's construction to its operational phase.

LGF will produce so-called “drop-in” fuel, which will be ready to use in today’s aircrafts with no requirement for engine and refueling infrastructure modifications. With an annual production of 165 million litres, it equates to fuelling 2,500 long-haul flights or 25,000 short-haul flights per year, contributing to the 2030 10% SAF target outlined in UK’s Jet Zero Strategy. Alfanar had previously secured a £11 million grant through the first window of UK Department of Transport’s AFF fund and an additional £2.4 million grant through the Green Fuels, Green Skies competition in 2021.

“Alfanar is pleased and honoured to have been selected as a recipient of further funding through the second window of the government’s Advanced Fuels Fund” said Noaman Al Adhami, Country Head UK, Alfanar.

“We acknowledge and commend the UK government and the Department for Transport for their steadfast commitment to advancing the reduction of net carbon emissions in hard to decarbonise sectors, such as aviation. The establishment and subsequent scale-up of UK’s sustainable aviation industry is a crucial part of the energy transition. We are thrilled to be recognised as one of the key players in supporting the government in its efforts to reach net zero. We look forward to collaborating further on the sector decarbonisation while providing much-needed national energy security.”

Transport Secretary Mark Harper said:  

“The investment we’re announcing today demonstrates our confidence in the UK’s SAF industry - creating jobs, encouraging overseas investment, and leveling up communities across the whole country. Thanks to this Government’s backing, the UK is quickly becoming a SAF superpower – ensuring people can continue to travel how they want, in a way that’s fit for the future.”