Government backs Teesside’s green aviation sector during visit to Nova Pangaea Technologies

The Government’s commitment to creating jobs, growing the economy, and delivering greener air travel was highlighted yesterday when the Transport Secretary visited Nova Pangaea Technologies (NPT) in Redcar. 

During the visit, the Secretary of State toured NPT’s demonstration plant to see part of the process of how everyday waste materials, such as wood offcuts and farming waste are transformed into ethanol and biochar. NPT project partners LanzaJet, who received £10million in Government support through the Advanced Fuel Fund, are developing Project Speedbird nearby which can then convert ethanol into SAF, creating a sustainable fuel fit for the future of flying.

The Secretary of State then chaired a roundtable with local leaders, SAF producers, airlines and investors including IAG, the National Wealth Fund and the Renewable Transport Fuel Association, to explore how Government policies are unlocking private investment and creating green growth across the North East. 

Speaking after the visit, the Secretary of State for Transport, Heidi Alexander said: 

“Teesside is flying when it comes to green growth, creating skilled jobs, boosting the economy, and leading the way on cutting emissions.  

“Nova Pangaea is a British success story, with everyday waste transformed to support production of the green fuels that will power the future of aviation. We’re backing this innovation as part of our plan to grow the economy and deliver the Plan for Change.” 

The SAF Mandate is already driving UK demand for sustainable fuel by setting a legal obligation for industry to supply a proportion of the green fuel each year, giving certainty to producers to ramp up their production.

The Government is also taking decisive action to scale up UK-made SAF by providing £198 million through the Advanced Fuels Fund to support pioneering projects, including a £63 million investment announced in July to boost domestic production. Combined with the forthcoming Revenue Certainty Mechanism which will guarantee a price producers receive for eligible SAF, the Government is giving investors the confidence to back new plants and a greener future for aviation.

Gary Bowdler, CEO of Nova Pangaea Technologies, said:

“It was a proud moment for the team to host this visit by senior government representatives to Teesside to see our demonstration plant, and meet with key players in building this new industry. NPT plans to build commercial production facilities in the UK to enable the scale up of SAF, in collaboration with LanzaJet, to British Airways and more broadly to the aviation sector in the UK; as well as to export its proprietary technology to enable SAF production internationally.”

Sophia Haywood, Director, EU & UK Government Affairs, Policy & Sustainability at LanzaJet, said:

“LanzaJet are proud to be developing Project Speedbird, the UK’s first ethanol-to-jet plant, in partnership with British Airways, in the heart of Teesside. Recently awarded £10m through the UK’s Advanced Fuels Fund, Project Speedbird is vital to building a national SAF industry and to unlocking opportunity and innovation in the North East region.

“With its rich industrial heritage and today’s vision, Teesside can become a world-leading hub for sustainable technologies. Ethanol-to-Jet can play a key role here, delivering economic growth and creating jobs, both directly and across the value chain, while simultaneously reducing emissions in the aviation industry and beyond.”

Jonathon Counsell, Group Sustainability Director at IAG, said:

“We welcome the opportunity to join the discussion at Nova Pangaea Technologies today, a business in which IAG has invested. Scaling up UK SAF production will depend on continued collaboration across government and industry.

"With SAF costing 3-5 times more than traditional jet fuel, we see the need for RCM and other measures to encourage investment in further SAF plants across the UK. These interventions are critical in helping to bring down costs for airlines and our passengers. IAG looks forward to collaborating with the Government on the design of the RCM levy to ensure it is effective, supports UK airlines’ competitiveness, and helps unlock investment in SAF production.”

Beyond SAF, the Government is supporting the growth and modernisation of the UK’s aviation sector, and on Wednesday announced the next steps for delivering a third runway at Heathrow to deliver drives jobs, investment, and regional connectivity across the country.  

The Government is clear that aviation growth and decarbonisation must go hand in hand ensuring new infrastructure is delivered in line with the UK’s legally binding climate targets, for which SAF has a major role to play.