Grangemouth refinery needs £3.5 billion for green transformation

The Grangemouth oil refinery in Scotland is set to undergo a major transformation that requires about £3.5 billion in private investment. A new study called Project Willow has outlined nine proposals for the future of this industrial site. This research cost £1.5 million to complete. The refinery is scheduled to close this year, leading to hundreds of job losses. The proposed projects in the report include plastic recycling, timber fermentation into bioethanol, and hydrogen production. The Scottish and UK governments believe these initiatives could create around 800 jobs by 2040. The report highlights the potential to boost low-carbon manufacturing in the UK but notes significant challenges. Producing low-carbon fuels and chemicals is currently more expensive than fossil fuels. This situation means substantial investment and new supply chains will be necessary. UK energy minister Michael Shanks emphasized the government's commitment to supporting Grangemouth’s industrial future, including a £200 million investment. Scotland's First Minister, John Swinney, also mentioned a commitment of £87 million from the Scottish government. He pointed out that Grangemouth has a strong industrial history and skilled workforce, which provides a unique advantage for investors. One option presented in the report is to produce sustainable aviation fuel using low-carbon hydrogen. Union leaders have suggested this could preserve jobs, as the conversion could happen over a few years. This plan might need around £2.1 billion and could start by 2035, employing up to 270 staff. A spokesperson for the refinery's owners, Petroineos, called the report a significant step for Grangemouth that could lead to more job opportunities in various industries. They expressed a desire to work with both governments to realize the report's recommendations.