Alfanar investment in Teesside to boost jobs in engineering and infrastructure
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A Saudi Arabian firm has committed to build a sustainable aviation fuel (SAF) facility on Teesside that could reshape not just regional supply of green fuels but also the civil engineering sector across the North East of England.
Alfanar’s proposed Lighthouse Green Fuels plant at the North Tees cluster would cost around £2 billion and convert more than 1.5 million tonnes of sustainably sourced biomass waste into up to 180 million litres of SAF per year. The site would also integrate with carbon capture and storage infrastructure coming to Teesside. More than 2,000 jobs are expected during construction with over 240 permanent roles once fully operational.
Engineering scale and complexity
The sheer scale of this development makes it a major civil engineering undertaking. Construction will likely involve large‑scale groundwork, materials handling, structural steelwork, heavy plant foundations, storage tanks, pipelines, roads and possibly rail or port interface work. The integration with carbon capture adds further complexity requiring specialist skills in civil, mechanical and environmental disciplines.
Existing regional capacities in infrastructure and construction will be tested. Procurement of steel, concrete, aggregates and specialist equipment may strain supply‑chains unless planning begins early and logistics are tightly managed. Contractors will need expertise not only in standard building works but also in industrial build standards, hazardous material handling, sustainable waste processing and emissions control.
Impacts for local contractors and supply chain
Local civil engineering, construction and sub‑contractor firms could see significant opportunity. The demand for skilled labour such as concrete finishers, welders, structural engineers, surveyors and heavy plant operators will rise sharply. Training and upskilling will be critical given the specialized nature of SAF plant builds.
The Teesside Freeport status provides advantages. It offers streamlined customs, favourable planning conditions, tax reliefs and a large cleared brownfield site in Teesworks. That could reduce lead times for site remediation and infrastructure set up. Local firms already involved in energy, renewables, port operations and process industry supply chains may find themselves getting contracts for civil work, site preparation, piling, utilities and foundations.
Policy environment and risks
The UK government has published reports and mandates to support SAF growth including a sustainable aviation fuels mandate, revenue certainty mechanisms and investment in SAF infrastructure. These set demand signals that make large industrial plants more feasible.
Yet there are risks. The availability of sustainable feedstock remains a concern. Civil engineering phase costs can overrun when dealing with regulation, environmental approvals or unforeseen ground conditions. Integration with proposed carbon capture and storage projects needs coordination. Delays in supply of materials, labour or specialist equipment could push up costs or slow project delivery.
Wider economic implications
The plant, while creating modest permanent operation jobs, promises thousands more during its construction. Its presence may stimulate growth in related sectors including roads, utilities, logistics and ports infrastructure. It also could anchor further investment in Teesside as a green fuels hub reinforcing its status in UK industrial strategy. Teesside already leads among UK freeports in investment and job creation.
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