19th Mar 2025 13:32
(Alliance News) - A low-carbon future for Grangemouth will require around GBP3.5 billion of private investment, a summary of the long-awaited Project Willow report says.
The GBP1.5 million study sets out nine options for the future of the industrial cluster in central Scotland.
Hundreds of jobs are set to be lost this year when the oil refinery there closes.
The study identifies nine "feasible" proposals which could attract private investment.
These include plastic recycling, fermenting Scottish timber into bioethanol, and hydrogen production.
Both governments say these projects could create up to 800 jobs by 2040.
Earlier this month, the Just Transition Commission warned it could take years to close the "jobs gap" left by the refinery's closure.
A summary of the report says the nine projects "have the potential to significantly enhance low-carbon manufacturing across the UK and create a positive future for Grangemouth".
It adds: "However, the report also underscores the challenges of this transformation as low-carbon fuels and chemicals remain more expensive to produce than fossil alternatives.
"This will require substantial capital investment from the private sector [GBP3.5 billion capital expenditure] and development of new supply chains."
Commenting on the report, 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 GBP200 million 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."
Scotland's 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 GBP87 million 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 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."
One of the nine options is to use low-carbon hydrogen to produce methanol, which would be converted into sustainable aviation fuel, SAF.
Union leaders have suggested this as a way forward which could save jobs, with Unite saying the plant could be converted "relatively easily" over a few years to produce SAF.
The Project Willow document says SAF operations would commence in 2035, with a capital expenditure of up to GBP2.1 billion required. Up to 270 staff would run the plant.
Derek Thomson, the Scotland regional secretary at Unite, urged the UK Government to back this option.
"What we're saying is, if you're going to accelerate anything in Project Willow, accelerate the sustainable air fuel plant," he said in an appearance before the Scottish Affairs Committee which coincided with the release of the report on Wednesday.
Thomson added: "It just makes no sense to me whatsoever that you wouldn't say as a government, let's go for the SAF project.
"It saves Grangemouth, it saves the refinery, it gets us on track to meet our mandates for our own SAF production, and it doesn't rely on us to import oil."
Such production, he added, could even result in making money for government.
A spokesman for the refinery's owners Petroineos said: "The publication of the first Project Willow report is a milestone event for Grangemouth that could mark the beginning of a transformation for the whole cluster and, in time, create many more jobs and growth opportunities across a variety of related industries in Scotland.
"We look forward to continuing to support both UK and Scottish governments as they implement the recommended policy, regulatory and fiscal changes required to unlock the opportunities identified in our report."
By Neil Pooran and Craig Paton, PA Scotland political staff
Press Association: News
source: PA
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