Lighthouse Green Fuels confirms land-option agreement for SAF project in Teesside, UK
Global project development, manufacturing and engineering group Alfanar announced in early July that it has signed a land-option agreement for its Lighthouse Green Fuels sustainable aviation fuel (SAF) project in Seal Sands, Teesside, U.K.
The agreement secures the site for the development of the multibillion LGF facility, a second-generation SAF plant that will be one of the largest of its kind globally and, according to LGF, is the most advanced in Europe.
The project will also be U.K.’s first new refinery since the 1960s.
Located at Seal Sands on the mouth of the River Tees, the site will enable full end-to-end SAF production, from feedstock pretreatment to final fuel production and storage.
Its proximity to key infrastructure and carbon capture and storage (CCS) networks will support efficient, ultra-low carbon operations and future scalability, the company stated.
Once operational, the facility will produce 180 million liters (nearly 48 million gallons) of SAF and 30 million liters (almost 8 million gallons) of renewable naphtha per year from sustainably sourced biomass feedstocks, including forestry and agricultural residues.
With access to CCS, the project can deliver carbon-negative fuel, reducing lifecycle emissions by over 200 percent compared to conventional jet fuel, according to LGF.
Once operational, LGF could contribute around 46 percent of the total U.K. SAF mandate on a greenhouse-gas (GHG) emissions basis, compared with around 20 percent without CCS, while also strengthening the U.K.’s long-term fuel resilience.
The project has now entered an advanced development phase, with front-end engineering design (FEED) completed at the end of May and all core technology licenses secured.
Planning and permitting continues to progress through the development-consent order (DCO) process ahead of a final-application submission in the summer.
This follows the recent announcement that LGF has been selected by Defra as a pilot project for the Lead Environmental Regulator program, alongside Sizewell C, helping streamline environmental consenting for nationally significant infrastructure projects.
In parallel, the project has submitted its application for connection into the Teesside CCS network, while commercial discussions continue with major biomass suppliers and SAF offtake partners.
To date, Alfanar has invested approximately £90 million (USD$120.7 million) into the project, with a further £100 million (USD$134.1 million) expected to be committed ahead of final-investment decision (FID) and financial close, targeted for the end of 2027.
“This marks another major milestone for Lighthouse Green Fuels as we advance towards financial close,” said Noaman Al Adhami with Alfanar. “The land-option agreement not only anchors the project in Teesside but gives us the platform to deliver one of the most advanced and ambitious SAF facilities anywhere in the world. At a time of growing fuel insecurity, this multibillion investment will strengthen the U.K.’s resilience to global oil-price shocks and unlock new opportunities for growth, innovation and skilled jobs in the region. We’re now firmly focused on reaching FID at the end of next year, with the aim to start construction in 2028 and start producing its first fuel from 2031.”
Chris McDonald, a member of Parliament who visited the LGF site, said, “Lighthouse Green Fuels is the kind of project that tells you something important about where Teesside is heading. The scale is impressive, the ambition is clear and it will be right at home in Billingham. A town with the industrial heritage, skilled workforce and know-how to deliver major projects of national importance. This is a powerful vote of confidence in our region. A groundbreaking project, major investment and a new industry, all coming together on Teesside. It has the potential to change aviation for the better and to cement the U.K., and Billingham in particular, as a leader in sustainable aviation fuel.”
