A NEW study has outlined nine options in plans to secure a long-term industrial future for Grangemouth.
The plan – which is backed by £25m from the Scottish Government and £200m from the UK Government – outlines its commitment to support jobs, unlock investment and drive growth.
The £1.5m feasibility study, published today by EY, follows the recent decision by Petroineos to decommission the oil refinery.
It has identified credible long-term industrial options for the Grangemouth site and explored how Grangemouth can build on its skilled workforce, local expertise and long heritage as a fuel leader in Scotland to forge a new path in low carbon energy production.
The report provides nine proposals likely to attract private investment, including plastics recycling, hydrogen production and other projects that could create up to 800 jobs by 2040.
It follows First Minister John Swinney’s announcement of £25m to establish a Grangemouth Just Transition Fund, which will support businesses and stakeholders to bring forward investible propositions for the site over the next 12 months, and the Prime Minister’s announcement last month of £200m to help unlock Grangemouth’s full potential.
First Minister John Swinney said: “We will leave no stone unturned in order to secure the future of the Grangemouth refinery site, and the Scottish Government has already committed or invested a total of £87m to help do so.
“Grangemouth is home to over a century of industrial expertise and employs thousands of highly skilled workers, placing the site at a massice 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.”
UK energy minister Michael Shanks said: “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.”
To kickstart the process, energy minister Michael Shanks and acting cabinet secretary for net zero and energy Gillian Martin co-chaired a meeting this morning of the Grangemouth Future Industry Board with local industry leaders, Falkirk Council, trade bodies and unions.
Scottish Enterprise and the UK Government’s Office for Investment will work with Petroineos to market the proposals set out in Project Willow and seek investor interest.
Alongside launching a search for investors, both governments have also committed to review the Project Willow policy recommendations and understand how government funding can be deployed to mature proposals from the private sector.