A KEY new report on the future of Grangemouth has laid out nine options for the site after the oil refinery closes down.
Project Willow, a joint venture between the UK and Scottish Governments and Petroineos – itself a joint venture between INEOS and the state-owned PetroChina, looked at more than 300 different technologies to identify what Grangemouth could best do in future.
It reported on Wednesday that nine had been identified as the best options, with these falling into three broader categories: waste recycling, bio-feedstocks, and offshore wind conduit projects.
The report said that around £3.5 billion in private investment will be needed. The options are:
Waste Recycling Projects
- Hydrothermal Plastic Recycling – Converts hard-to-recycle plastics into recycled naphtha, vapors, and pyrolysis oil.
- Dissolution Plastics Recycling – Uses chemicals to dissolve and filter plastics, returning them to a virgin-like state.
- ABE Biorefining – Ferments carbohydrate-rich waste (like food, drink, and agricultural by-products) into acetone, butanol, and ethanol.
Bio-Feedstock Projects
- Second Generation Bioethanol – Breaks down and ferments Scottish timber into bioethanol for fuel blending and industrial uses.
- Anaerobic Digestion – Processes organic waste and biogas to produce biomethane and biochar.
- HEFA (Hydrotreated Esters and Fatty Acids) – Converts Scottish oilseed cover crops into Sustainable Aviation Fuel (SAF) and renewable diesel.
Offshore Wind Conduit Projects
- Fuel Switching – Replaces natural gas combustion with low-carbon hydrogen in industrial processes.
- E-Methanol and Methanol-to-Jet – Uses low-carbon hydrogen and CO₂ to produce methanol and convert it into Sustainable Aviation Fuel.
- E-Ammonia – Produces low-carbon ammonia from hydrogen for use in shipping and chemical industries.
The recommendations in the report from Ernst and Young will be explored with some £25 million in funding from the SNP Government and £200m pledged by the UK Government.
The Labour Government said the proposals "could create up to 800 jobs by 2040, grow the economy, and deliver on both Governments’ shared ambition to secure a long term future for Grangemouth".
Redundancies began at Grangemouth last month, with the oil refinery due to shut down entirely later this year.
Labour’s Energy Minister Michael Shanks and the SNP’s acting Energy Secretary Gillian Martin co-chaired a meeting on Wednesday to begin the process of marketing the proposals set out in Project Willow and seek investor interest, the Scottish Government said.
“Grangemouth is home to over a century of industrial expertise and employs thousands of highly skilled workers, placing the site at a massive competitive advantage and creating a unique opportunity for investors.
“Everyone working at Grangemouth’s refinery – and in the wider industrial cluster - is a valued employee with skills that are key to Scotland’s economic and net zero future.
“This report sets out a wide range of viable alternatives for the refinery site, demonstrating that a long term, new industrial future at Grangemouth is achievable. We will continue to work closely with the UK Government to realise these opportunities and Scottish Enterprise stands ready to support inward investors looking to progress any of these technologies.”
Shanks echoed the SNP leader, saying: "We committed to leaving no stone unturned in supporting an industrial future for Grangemouth delivering jobs and economic growth.
"This report and the £200m investment by the UK Government demonstrates that commitment.
“We will build on Grangemouth’s expertise and industrial heritage to attract investors, secure a long-term clean energy future, and deliver on our Plan for Change.”
Jane Martin, Scottish Enterprise managing director for innovation and investment, who is overseeing the transition of Grangemouth, said: “This publication marks a significant milestone in ensuring Grangemouth continues with its hugely important role in Scotland’s economy ...
“Project Willow has identified an opportunity to align Scotland’s industrial regeneration with government climate obligations, and to demonstrate a pathway to green energy while securing new jobs and growth.
“The nine recommended projects all have the potential to help advance the development of low carbon technologies in Scotland whilst ensuring Grangemouth remains THE location of choice for investors and innovators in the sector."
