Alfanar's Lighthouse Green Fuels, a green aviation fuel plant, secures additional £8.66 million in government funding

Posted on 20 November 2023

• Global conglomerate and project developer,Alfanar, are developing a £1.5bn sustainable aviation fuel (“SAF”) facility – the Lighthouse Green Fuels project – in Teesside, the largest advanced SAF facility in Europe.
• UK Government’s collective £135 million Advanced Fuels Fund (“AFF”) supports the development of first-of-a-kind (“FOAK”) SAF projects through the project pipeline to reach investment ready stage and achieve commercial scale..
• The commercial scale advanced SAF plant uses gasification and Fischer-Thropsch technology to convert nationally sourced biogenic and non-biogenic wastes and residues into second generation SAF.
• Lighthouse Green Fuels (LGF) will produce over 165 million litres annually, solidifying its role as a key player in supporting the UK Government's Jet Zero 10% SAF target by 2030.

17.11.2023 Alfanar was today awarded additional £8.66 million in government funding to support the development of their Lighthouse Green Fuels advanced Sustainable Aviation Fuel (“SAF”) facility based on Teesside.

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 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 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 refuelling 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 £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 are pleased and honoured to have been selected as a recipient of further funding through the second window of 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 and we are thrilled to be recognised as one of the key players to support government in their 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 levelling 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.”