Mayor Welcomes New Plant to Unlock Sustainable Aviation Fuel Production

Business & Invest | Published on: 29th November 2022

Tees Valley Mayor Ben Houchen has welcomed news that a local clean technology firm has signed an agreement to base its new commercial plant and headquarters within the Teesside Freeport.

Nova Pangaea Technologies sustainably delivers low-carbon fuels and products. It has now signed an Exclusivity Agreement and Heads of Terms with Sembcorp Energy UK for a plot at Wilton International for its first commercial plant, called NOVAONE.

NOVAONE will be the UK’s first bioethanol facility of its type, with construction expected to begin in early 2023. The UK’s recently announced Jet Zero strategy, where bioethanol can be fermented to sustainable aviation fuel (SAF), requires five commercial plants to be in construction by 2025 to decarbonise 10% of all domestic flights by 2030.

The creation of this facility will begin to meet the urgent needs of decarbonising the transport sector, including aviation, and agricultural sectors. It also complements work taking place at Teesside International Airport to support its low carbon ambitions.

The five-acre plot benefits from Sembcorp’s Wilton International infrastructure, utilities, and services, located within the Teesside Freeport zone.

Development and construction of the facility will create hundreds of jobs during the construction phase and approximately 45 full-time, green, local and highly skilled jobs once in operation.

Nova Pangaea recently announced the signing of a Joint Development Agreement with British Airways and LanzaJet to accelerate the UK’s flagship SAF and carbon removal initiative, Project Speedbird. The company is leading the UK’s decarbonisation efforts across several sectors and bolstering the UK’s energy security by boosting domestic production.

Tees Valley Mayor Ben Houchen said: “Our region is leading the way in cutting-edge projects of the future, so when firms look for the best place to invest in net zero innovation, they choose Teesside. Today’s announcement by Nova Pangaea will drive forward critical work to decarbonise the aviation industry.

“This is a fantastic announcement, with development of sustainable aviation fuel helping to create even more jobs of the future and putting Teesside further at the forefront of low-carbon initiatives.”

Sarah Ellerby, CEO of Nova Pangaea Technologies, said: “Nova Pangaea is delighted to confirm the location of our first commercial plant in Teesside. We are driven by contributing to the UK’s Levelling Up agenda as well as the UK’s recently announced Jet Zero strategy by creating significant, green jobs and accelerating the critical pathway to unlock SAF. We look forward to working with Sembcorp in an exciting opportunity for the Company and Teesside to catalyse the transition to cleaner fuels today.”

Andy Koss, CEO UK & Middle East, Sembcorp Industries, said: “Sembcorp Energy UK is excited to extend its support to Nova Pangaea with its ‘plug and play’ approach to available development land. Nova Pangaea’s role in Project Speedbird, which could see a major sustainable aviation fuel investment on Teesside, is an exciting opportunity for the region, and for Wilton International in particular. We look forward to supporting Nova Pangaea Technologies and their partners in the energy transition to Net Zero 2050 together.”

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