Today, Chancellor Rachel Reeves announced a major boost for the UK’s Sustainable Aviation Fuel (SAF) industry, confirming an additional £63 million investment into the Advanced Fuels Fund and detailing a Revenue Certainty Mechanism to drive further private investment.

This commitment marks a significant step in the UK’s journey towards greener aviation, with Teesside at the forefront of this transition. The latter had been campaigned for by Teesside’s MPs and industry, and was strongly welcomed.

The announcement has been welcomed by industry leaders and Teesside representatives alike, reinforcing the region’s status as a hub for green fuel innovation.

Alfanar, the company behind Lighthouse Green Fuels—Europe’s most advanced SAF production facility, based in Teesside—hailed the Chancellor’s commitment as a game-changer.

Noaman Al Adhami, Alfanar’s UK Country Head, said:

“The Chancellor’s announcement today on the Advanced Fuel Fund and Revenue Certainty Mechanism is brilliant news for both the economy and the environment. This truly shows that, as the Chancellor said on the weekend, ‘sustainable aviation and economic growth go hand-in-hand’.

“Our £1.5bn Lighthouse Green Fuels project will help establish Teesside as a European hub for green fuel production and could be fuelling flights from 2028. The policy framework to enable projects like ours to reach a Final Investment Decision is now coming together, proving the Government’s serious commitment to building a world-leading SAF industry in the UK.”

Luke Myer MP: ‘Teesside is Open for Business’

Welcoming the announcement, Luke Myer MP said:

“We have today heard a full-throated commitment from the Treasury to Teesside’s sustainable aviation fuel industry. I thank the Treasury for listening to Teesside MPs on the revenue certainty mechanism, which will unlock millions of pounds of investment in the industry from companies such as Alfanar and Iogen. Will the Chief Secretary deliver a message from the Dispatch Box to SAF investors the world over that Teesside is open for business?“

In response, Chief Secretary to the Treasury Darren Jones confirmed the Government’s backing:

“I thank my honourable friend and all of my honourable friends from the Teesside region, who have campaigned hard for investment into their area. I visited the plant in question when I was Chair of the Business Committee in the former Parliament. Madam Deputy Speaker and remember clearly the company telling us how frustrating it was that the last government would not allow them to invest and grow the development of sustainable aviation fuel – but instead allow it to be imported at cost from other countries. This government is taking a different approach, that is unlocking investment and jobs in Teesside and across the country in the interests of working people.” 

This announcement is a major victory for Teesside’s green economy and its ambitions to become a leader in clean technologies. With government backing, private investment, and a dedicated push from local representatives, Teesside is set to play a pivotal role in the future of sustainable aviation.