Minister for Investment, Baroness Poppy Gustafsson CBE, attended the opening of Alfanar’s London HQ
Alfanar’s commitment to UK ramps up as SAF revenue certainty mechanism bill progresses through Parliament.
Following the introduction of the UK’s sustainable aviation fuel (SAF) mandate, which came into force on 1 January, 2025 Alfanar, is signaling its broader commitment to scaling SAF production and investment in the UK. The Saudi engineering and construction firm has opened its new UK headquarters in central London.
“With the third largest aviation network in the world and a third of Europe’s carbon storage capacity, the UK is perfectly positioned to be a world leader in SAF production and a future hub for our European green fuel’s operation,” said Alfanar Chief Investment Officer, Mishal Al Mutlaq.
UK SAF mandate
As from the start of this year, the UK’s SAF mandate outlines that at least 2 per cent of jet fuel used on flights departing the UK must be SAF. This figure rises incrementally to 10 per cent by 2030 and 22 per cent by 2040, where it will remain pending future supply security. Alfanar is currently developing a waste-to-SAF production plant in Teesside to help meet this demand.
Alfanar’s new office in the UK capital will be home to its project development business, including the global hub for their transport decarbonisation business. Alfanar currently employs around 120 people across the UK.
Waste-to-SAF production plant in Teesside
Alfanar’s GBP 2 billion waste-to-SAF production facility in Teesside, known as Lighthouse Green fuels, is currently going through the Development Consent Order planning process and is slated for completion in 2029. The facility will be essential to decarbonising the UK’s aviation sector, producing 180m litres of SAF each year. That’s enough to power 27,000 short-haul flights.
The Teesside facility will use carbon capture infrastructure enabling it to produce negative emissions fuels, with lifecycle greenhouse gas savings of 200 per cent compared to conventional jet fuel.
With the UK currently processing its SAF revenue certainty mechanism bill through Parliament, the opening of Alfanar’s new base in the capital coincides with this development which will assure investors of the potential to deliver future SAF projects in the UK.
Vote of confidence
Minister for Investment, Baroness Poppy Gustafsson CBE, attended the opening, where she said Alfanar’s investment in the UK is a “major vote of confidence in not only our economy but this country’s green investment environment.”
She also noted that the UK is “serious about fostering the benefits of net zero, that’s why we’ve identified clean energy as a key growth sector in our upcoming modern Industrial Strategy.”
Meanwhile, Al Mutlaq welcomed the British Government’s steps to help deliver the assurances required to develop a UK SAF market. “With continued support, our Lighthouse Green Fuels project will cut aviation emissions whilst establishing a new British green industry in Teesside and attracting significant inward investment to the region and the UK,” he said.
