Teesside's Lighthouse Green Fuels Project gets Saudi £1bn

Ben Houchen said more work was needed globally to create sustainable aviation fuel

A plant which will convert household waste into aviation fuel on Teesside is to receive a £1bn investment from its Saudi Arabian owners.

Alfanar said 700 jobs would be created in the construction of the Lighthouse Green Fuels Project at Billingham and 240 jobs when it is operational.

The project aims to make fuel which produces 80% fewer greenhouse gases than current fossil fuels.

Tees Valley Mayor Ben Houchen said it was "fantastic news".

Mr Houchen said: "Alfanar's commitment to the region and its workers is fantastic to see, with hundreds of high-quality, well-paid jobs set to come for people right across Teesside, Darlington and Hartlepool.

"It also ties into our ambitions to make Teesside Airport the UK's first hydrogen-ready airport, and an early adopter of these sustainable aviation fuels.

"Critically, at a point where we need to be thinking outside of the box to cut down on traditional jet fuel emissions to keep our aviation sector soaring, this investment and innovative project will help us become a pioneer in the aviation fuels of the future."

The Lighthouse Green Fuels Project aims to make 80% fewer greenhouse gases than the fossil fuel equivalent

Mr Houchen told BBC Radio Tees the plant on the former Air Products site was a "world first" to create "sustainable aviation fuel" at an industrial scale, but there was still more work needed globally.

He said the plant would create 180 million litres of fuel a year which "sounds like a lot" but one airline could use up to 150 million litres annually.

"It just shows the scale of the challenge the globe has to face but it's great Teesside's a world first," he said.

When asked about strengthening links with Saudi Arabia and its poor human rights record, which saw 81 men beheaded this week, Mr Houchen said: "There are absolutely issues that need to be faced and there need to be tough conversations with Saudi Arabia."

He said "Saudi investment is welcome" as part of a diverse mix of investors from other parts of the world.

"You can ask the right questions about Saudi Arabia and the human rights record, but you don't become overly reliant on investment [from one country]," he said.

The investment was confirmed during Boris Johnson's visit to Saudi Arabia and the UAE for talks on energy, regional security and humanitarian relief.

Alfanar was previously awarded £2.4m by the UK government as part of its Green Fuels, Green Skies competition to take the project forward.