£2bn Teesside fuel project fast-tracked

12 April 2026

A major £2 billion Teesside fuel project backed by Luke Myer MP has been given a significant boost after the Labour Government moved to speed up approvals – bringing thousands of jobs a step closer.

The government has confirmed that the Environment Agency will act as a single “lead regulator” for Lighthouse Green Fuels, cutting red tape and accelerating decisions so construction can move forward faster. The move is part of wider action to get major clean energy projects built more quickly, protecting families from rising bills while backing British industry.

The Lighthouse Green Fuels project by Alfanar, is set to transform waste and agricultural residues into sustainable aviation fuel from their plant on Teesside. It is expected to create around 2,000 construction jobs in Teesside and thousands more across the UK supply chain, establishing the region as the heartland for a new industry.

The project is set to become Europe’s largest sustainable aviation fuel plant — producing enough fuel for tens of thousands of flights each year — and marking the first major refinery development in the UK for decades. With global energy markets under pressure, ministers say speeding up projects like Lighthouse Green Fuels will strengthen Britain’s energy security, create jobs, and help bring down bills in the long run — with Teesside at the heart of that effort.

Today’s announcement follows years of work from Luke Myer MP to push the project forward with government. Since being elected, he has met repeatedly with developers, visited the site, and raised the importance of sustainable aviation fuel in Parliament. He recently met the team in Parliament last month.

Luke Myer MP said:

“This is a big step forward for Teesside. This is exactly the kind of project our area needs: skilled jobs, real investment, and a proper industrial future.

“We’ve now got government moving to cut delays and back this properly. For too long, places like ours have had the ideas and the talent but been held back by slow decisions. We’ve got the sites, the skills and the know-how on Teesside to lead in industry again, and this project shows what’s possible when we back British industry and get on with it.”

Secretary of State for Environment, Food and Rural Affairs, Emma Reynolds said:

“We are taking back control of our energy supply to bring stability for families and create skilled jobs for local people, without compromising on environmental protections.

“Global shocks from conflicts in Ukraine and the Middle East show that relying on a volatile global fossil fuel market is simply not sustainable for Britain. These measures are a win-win for energy security, nature and for keeping bills down in the long run.”

Noaman Al Adhami, UK Country Head for Alfanar Projects, said:

“We welcome the opportunity to support Defra’s Lead Environmental Regulator pilot, which represents an important step forward in streamlining engagement with statutory bodies and accelerating the delivery of major infrastructure projects.

“By enabling earlier, more coordinated regulatory input, this initiative will help unlock investment and support the timely progression of projects like Lighthouse Green Fuels as we advance towards construction.

“This pilot also plays a vital role in supporting the government’s wider ambition to accelerate infrastructure delivery and strengthen its industrial strategy. We are proud that LGF can contribute to this effort while helping to establish a new low-carbon industry in the UK.”

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