Humberside to get £600m sustainable fuel investment

US-based LanzaTech Global Inc. has announced Saltend Chemicals Park in Humberside as the intended location for its pioneering Dragon II project — a £600 million investment to produce sustainable aviation fuel (SAF) and renewable diesel at scale.

“Once operational, Dragon II is expected to deliver around 80,000 tonnes of SAF, about 1% of UK jet fuel requirements, and 8,000 tonnes of renewable diesel annually, supporting around 300 skilled jobs during its construction and 150 in operation,” said LanzaTech.

Saltend Chemicals Park is owned by px Group, part of the Ara Partners, a private equity and infrastructure investment firm.

Saltend Chemicals Park is located within the Humber Freeport Hull East tax site. Investing within a freeport tax site offers a range of incentives, from business rates relief and Employer National Insurance contribution relief, to Enhanced Capital Allowances on new plant and machinery.

Humber Freeport CEO Simon Green 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.”

LanzaTech said: “Development of the Dragon projects has been aided by strong UK government support.

“In July 2025, LanzaTech was awarded a £6.4 million grant from the Department for Transport’s Advanced Fuels Fund (AFF), which is helping to accelerate both Dragon I and Dragon II projects.

“Project Dragon — which stands for Decarbonizing and Reimagining Aviation for the Goal Of Netzero — features two complementary initiatives that both use the LanzaJet Alcohol-to-Jet (AtJ) process: Dragon I in Port Talbot, South Wales; and Dragon II, in Humberside.

“LanzaTech also plans to produce in total 50kt of the ethanol to be processed at these facilities from sites in Milford Haven and Saltend using LanzaTech’s gas fermentation technology.

“This will convert waste carbon dioxide and green hydrogen into ethanol that will then leverage LanzaJet’s technology to convert that ethanol to produce a Power-to-Liquid (PtL) SAF. The use of green hydrogen is dependent upon amendments to current rules for SAF production due to the high cost of the hydrogen required.

“The planned facility is scheduled to begin construction in the second half of 2027 and be operational during 2030. It represents a significant contribution to the UK’s net-zero ambitions, national energy security, and the creation of high-value jobs and industrial growth across the region.

“LanzaTech is exploring opportunities to collaborate with local partners and utilise the region’s extensive supply chains and emerging CO2 pipeline infrastructure and hydrogen production to maximise benefits to the region to reinforce Humberside’s position as a leader in industrial decarbonisation.

“This opportunity aligns with Saltend Chemical Park’s vision and strategic drive to support the transition, diversification, and decarbonisation, including the development of a low-carbon hydrogen industry, whilst maximising economic value, industrial synergies, and long-term sustainability.”

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.”

px Group CEO Geoff Holmes said: “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.”