LanzaTech says it has chosen Saltend Chemicals Park because of the excellent infrastructure there
An aerial view of Saltend Chemicals Park.(Image: Supplied)
About 150 long term jobs are expected to be created in a £600m investment by US firm LanzaTech as it creates a sustainable aviation fuel factory in East Yorkshire. The carbon recycling firm says 300 jobs overall will come in the construction and in operation of the major ‘Dragon II’ project at Saltend Chemicals Park.
Work is expected to start on the facility in the second half of 2027, with production set to start in 2030. Once operational the site is expected to deliver around 80,000 tonnes of sustainable aviation fuel (SAF), which is about 1% of UK jet fuel requirements, and 8,000 tonnes of renewable diesel annually.
The Illinois-based firm has received financial support from the UK Government including a £6.4m grant from the Department for Transport’s Advanced Fuels Fund in July last year. LanzaTech is using the funds to progress Dragon II alongside Dragon I, based at Port Talbot in Wales.
News of the major investment follows the closure of Vivergo Fuels’ Saltend site last year, which had been lined up to provide bioethanol to Meld Energy, which had talked of plans to build a SAF factory nearby. LanzaTech also plans to produce 50kilotonnes of the ethanol to be processed at Saltend and Port Talbot, from sites in Milford Haven and Saltend.
The firm will use its gas fermentation technology to convert waste carbon dioxide and green hydrogen into ethanol that will then be converted into power-to-liquid SAF. The use of green hydrogen will depend on changes to current rules for SAF production due to the high cost of the hydrogen required.
Jim Woodger, LanzaTech managing director for EMEA and Americas, said: “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.
“We selected the px Saltend Chemicals Park because it offers exceptional infrastructure for SAF production and the future prospect for hydrogen and CO2 pipelines and storage. The skills of the px Group team also provides an excellent fit with LanzaTech.”
Geoff Holmes, CEO of px Group, which owns 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.
“Dragon II will further strengthen the Humber’s status as the UK’s Energy Estuary, delivering jobs and a resilient, net-zero future for the region.”
Simon Green, Humber Freeport’s CEO, said: “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.
“With a similar facility already operational in the US, LanzaTech’s technology is proven and will reinforce the Humber’s growing status as a leading UK hub for the development of sustainable aviation fuel and associated critical chemicals. It is also 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 important developments such as this.
“We’re delighted to welcome LanzaTech to the Humber and look forward to working closely with the business to maximise supply chain opportunities and growth across the region.”