In a major boost for the Humber region's green economy, US carbon recycling company LanzaTech has confirmed plans to establish a £600 million sustainable aviation fuel (SAF) manufacturing facility at Saltend Chemicals Park in East Yorkshire. The project, named Dragon II, is set to generate significant employment opportunities, with around 150 permanent positions expected upon completion and approximately 300 jobs during the construction phase.
Project Timeline and Production Capacity
Construction of the Dragon II facility is scheduled to commence in the latter half of 2027, with manufacturing operations slated to begin by 2030. Once fully operational, the site is projected to produce an impressive 80,000 tonnes of sustainable aviation fuel annually, which accounts for roughly 1% of the UK's total jet fuel demand. Additionally, the plant will manufacture 8,000 tonnes of renewable diesel each year, further contributing to the nation's renewable energy targets.
Government Support and Technological Innovation
The Illinois-based company has secured crucial financial backing from the UK Government, including a £6.4 million grant from the Department for Transport's Advanced Fuels Fund, awarded in July last year. LanzaTech will utilise its proprietary gas fermentation technology to transform waste carbon dioxide and green hydrogen into ethanol, which will subsequently be converted into power-to-liquid SAF. This innovative approach positions the Humber facility at the forefront of sustainable fuel production.
Strategic Location and Regional Impact
Jim Woodger, LanzaTech's Managing Director for EMEA and the Americas, expressed enthusiasm about the project, stating: "We are excited to bring LanzaTech's carbon recycling technology paired with our partner LanzaJet's world-leading SAF production technology to Humberside. We anticipate we will create around 300 high quality, skilled jobs both during construction and in operation." He highlighted that Saltend Chemicals Park was selected due to its exceptional infrastructure for SAF production and future prospects for hydrogen and CO2 pipelines and storage.
Geoff Holmes, CEO of px Group, which operates Saltend Chemicals Park, added: "This major investment from LanzaTech demonstrates Saltend's continued attractiveness for world-first, low-carbon projects. Our plug-and-play model, deep technical expertise, and unmatched site infrastructure allow pioneers like LanzaTech to deploy innovative projects at speed and scale." He emphasised that Dragon II will strengthen the Humber's status as the UK's Energy Estuary, delivering jobs and a resilient, net-zero future for the region.
Broader Economic and Environmental Benefits
Simon Green, CEO of Humber Freeport, welcomed the investment, noting: "LanzaTech's announcement represents a significant investment for the Humber region. In joining a world-class cluster of low carbon technology and innovation, LanzaTech benefits from Saltend Chemicals Park's 'plug and play' proposition, with feedstock and offtake partners on site." The project also represents a major direct inward investment into Humber Freeport's Hull East tax site, enabling LanzaTech to benefit from a range of incentives designed to attract such important developments.
This investment comes after the shutdown of Vivergo Fuels' Saltend facility last year, marking a positive turnaround for the site. LanzaTech also plans to manufacture 50 kilotonnes of ethanol for processing at Saltend and Port Talbot, sourced from facilities in Milford Haven and Saltend, further integrating the UK's green energy supply chain.
