Grangemouth's £3.5 Billion Transformation Plan Unveiled

Transformation Plan Overview

Grangemouth, Scotland's only oil refinery, faces closure by the second half of 2025, risking 400 jobs. A £3.5 billion transformation plan, detailed in the "Project Willow" report, proposes nine pathways to convert the site into a renewables hub, potentially creating 800 jobs over 15 years.

Proposed Pathways

The report, funded by UK and Scottish government ministers, outlines options including a plastic recycling plant, bioethanol production from wood, a green hydrogen hub, and sustainable aviation fuel (SAF) production. Other options involve e-ammonia production, biorefining, and biomethane generation from organic waste.

Investment and Challenges

First Minister John Swinney expressed confidence in attracting private investment to meet the £3.5 billion target, citing interest in net-zero commitments. However, the report by consultancy EY highlights challenges, noting that low-carbon fuels and chemicals are currently more expensive than fossil alternatives, requiring significant private sector investment and new supply chains.

Focus on Sustainable Aviation Fuel

Unions, including Unite, advocate for the SAF option, suggesting it could be implemented relatively easily. The report indicates SAF operations could begin by 2035, with a capital expenditure of up to £2.1 billion. Derek Thomson from Unite urged the UK Government to prioritize the SAF project, emphasizing its potential to save Grangemouth and support UK SAF mandates.

Future Prospects

The future of Grangemouth depends on securing private investment and overcoming the transition challenges to a low-carbon economy. The coming months will be critical in determining the feasibility of this ambitious plan.