Just Transition for the Grangemouth industrial cluster: discussion paper

Investment in Grangemouth

Substantial and transformative investment has been committed to the cluster. Private sector investment, such as INEOS’s £1 billion^[13] investment intentions for a world-scale low-carbon hydrogen plant at Grangemouth supports this thinking, and lies at the heart of the INEOS Grangemouth Net Zero route map – a major operator in the Grangemouth cluster who has committed to deliver emissions savings of more than 60% across the site by 2030, building on already significant emissions reduction achievements. In addition to reducing emissions, investing in locally produced hydrogen will also benefit other assets at the Grangemouth site, fuelling the existing Combined Heat and Power Plant operations, and other adjacent energy-producing assets. This project complements other INEOS investment announced at Grangemouth in recent years, including a new £350m^[14] energy plant, and a £500m infrastructure upgrade programme to the Forties Pipeline System.^[15]

Significant investment has also been announced for the wider cluster, including Pirimal’s commitment to the construction of a new multipurpose state-of-the-art antibody-drug conjugate (ADC) manufacturing and aseptic facility in Grangemouth (as part of a broader £55m investment package)^[16] and with Celtic Renewables’ bio-refining facility.

This tangible private sector investment at scale accompanies a range of public sector investment initiatives, including the £80m Growth Deal. The Scottish Government is investing up to £40 million in the Falkirk Growth Deal, matching the investment made by the UK Government – including an additional £10 million specifically for green recovery projects related to the Greener Grangemouth programme. Falkirk Council and Scottish Canals have also pledged £45 million and £5 million respectively, bringing the total potential investment of the Falkirk Growth Deal to £140 million. This funding contributes to the Deal’s two themes, Innovate Industry and Great Places, each containing a series of interlinked projects. Together, these projects and underpinning government support will target initiatives to transform Grangemouth’s chemicals and manufacturing industries into an internationally competitive low carbon proposition while enabling place-making and a just transition to net zero. This includes projects such as:

• the Carbon Dioxide Utilisation (CDU) Centre; to be the UK centre for advanced CDU technology testing which shares its learning with industry to ensure an effective transition to sustainable product manufacturing.
• the Bioeconomy Accelerator Pilot Plant; to test and develop technologies and feedstocks to enable the chemical industry to transition from reliance on traditional fossil fuels, including through renewable resources or waste streams from other processes.
• Strategic Innovation Sites; to accommodate future sector opportunities within advanced manufacturing; including chemical sciences, industrial biotechnology, CO2 Utilisation and zero-emission heavy duty vehicles.
• the Greener Grangemouth Programme; to help local people to prosper from the jobs and wealth creation in the surrounding area.
• the Skills Transition Centre.