Essar Energy Transition Wins Government Backing for SAF Production Hub at Stanlow

(Essar Energy Transition) £2.5 million Government funding to develop one of the largest advanced SAF production facilities in the UK, based at Essar Energy Transition’s Stanlow energy hub; The production facility plans to use methanol-to-jet technology to convert renewable e-methanol and bio-methanol into SAF; Leveraging Stanlow Terminals existing import infrastructure enables access to competitive and low carbon intensity methanol feedstocks; Importantly, SAF will be blended on-site with EET Fuels’ existing jet fuel production to directly supply the UK aviation industry

Essar Energy Transition (EET), which plans to create the world’s leading low carbon process refinery, has been awarded £2.5m from the UK Government’s Department for Transport (DfT), as part of its Advanced Fuels Fund (AFF) scheme, to develop its plans for the creation of one of the UK’s largest advanced Sustainable Aviation Fuels (SAF) production hubs.

Essar Energy Transition plans to establish a Methanol-to-Jet (MtJ) production hub capable of producing 200,000 tonnes per annum (tpa) of advanced SAF, using c. 550,000 tpa of renewable e-methanol and bio-methanol sourced domestically in the UK and internationally, including from our sister company – Essar Future Energies – who are developing an e-methanol project in Gujarat, India.

Having completed a Feasibility Study earlier in 2025, the receipt of the AFF grant enables Essar Energy Transition to advance to the Pre-Front-End Engineering Design (pre-FEED) stage. It is targeting completion of pre-FEED by March 2026, with full FEED commencing in Q2 2026 and Final Investment Decision (FID) by the end of 2027.

The MtJ production hub’s location at Stanlow has advantages by leveraging Stanlow Terminals existing import infrastructure enabling access to the most competitive, low cost and low carbon intensity (CI) methanol feedstocks. The existing refinery processing facilities, combined with low-carbon power, hydrogen and carbon capture facilities under development, also offer unique integration opportunities to create one of the lowest CI SAF production facilities in the UK.

Advanced SAF produced at the hub will utilise Essar Energy Transition’s established UK jet export infrastructure—including the Manchester Jet, Midlands, and UKOP oil pipeline systems —as well as existing road and marine distribution routes, allowing supply to regions across the UK. This infrastructure already supplies 10 UK airports including nearby Manchester International Airport. The hub will be the most direct SAF supply point to the UK aviation sector, blending SAF on-site into the existing jet fuel stream at Stanlow.

Stanlow’s location allows for future scaling of SAF production as demand grows, with the recent feasibility study highlighting strong integration opportunities with EET Fuels, Stanlow Terminals, EET Hydrogen and EET Hydrogen Power’s broader low-carbon initiatives, already in development at the site. This positions the facility to play a central role in the UK’s evolving energy transition landscape.

“We welcome the UK Government’s support, which enables us to carry out a detailed pre-front-end engineering design process and accelerate this flagship UK advanced sustainable aviation fuels project towards final investment decision. At Stanlow, we have major decarbonisation ambitions, aiming to become a leading energy transition hub and home to the world’s first low-carbon process refinery. Domestic advanced SAF production is central to our long-term vision and a key catalyst for decarbonising aviation. With SAF still making up only a tiny fraction of global jet fuel use, our MtJ plant will play a critical role in closing that gap and helping the UK meet its Jet Zero targets.”

Manchester Airport Managing Director, Chris Woodroofe, said:

"The widespread availability of Sustainable Aviation Fuel (SAF) sits at the heart of plans to decarbonise aviation in the UK by 2050, which is why it is pleasing to see the Government drive forward initiatives that support its production across the UK. This funding will mean airlines using Manchester Airport will have direct access to SAF via the existing pipeline to the Stanlow fuel plant. I am proud to see the North West playing a leading role in the creation of a domestic SAF industry that will support aviation decarbonisation whilst also creating thousands of new green jobs. Alongside the introduction of the SAF Mandate and Parliament's support for a Revenue Certainty Mechanism, this is an important step towards aviation becoming net zero by 2050."

The development of a SAF production hub represents a significant commercial opportunity for Essar Energy Transition. The UK’s SAF Mandate, effective from January 1, 2025, sets progressive targets for aviation fuel suppliers to incorporate SAF into jet fuel for flights departing from the UK. The targets are designed to support the UK’s Jet Zero Strategy to achieve net-zero aviation emissions by 2050. By 2040, 22% of total jet fuel demand must be SAF, up from 2% today. The proposed MtJ facility will enable EET Fuels to meet their own advanced SAF obligations under the UK SAF Mandate by 2035.

The funding for Stanlow’s MtJ project comes from the AFF third window launched by the DfT in February 2025, which has allocated £63m to support advanced SAF projects between July 2025 and March 2026, helping them reach key development and commercial milestones. Further support is anticipated from the AFF beyond March 2026 and, combined with the UK Government introducing legislative measures to implement a revenue certainty mechanism to support SAF production in the UK, this will enable UK advanced SAF market projects to reach FID and start-up.

Essar Energy Transition’s vision is to be a leading producer of low carbon fuels and establish a major energy transition hub in the North-West of England. Essar Energy Transition plans to channel US$3 billion investment in developing a range of low carbon energy transition projects over the next five years in the UK.

EET’s investment programme will play a key role in accelerating the UK’s low carbon transformation, supporting the government’s decarbonisation policy and creating highly skilled employment opportunities at the heart of the North West. READ MORE