Grangemouth’s Clean Energy Future: Nine Industrial Pathways for Transformation

Grangemouth, historically one of Scotland’s key industrial hubs, is now at the center of a major transformation effort. Plans to secure its long-term industrial future have gained momentum as a feasibility study outlines nine potential pathways for the site’s redevelopment.

Backed by £25 million from the Scottish Government and £200 million from the UK Government, the project aims to create jobs, attract investment, and position Grangemouth as a leader in low-carbon energy production.

The £1.5 million study, conducted by EY, follows the decision by Petroineos to decommission the oil refinery. It identifies a range of industrial opportunities that could leverage Grangemouth’s skilled workforce and long-standing role in Scotland’s energy sector. These proposals could generate up to 800 jobs by 2040 and establish Grangemouth as a key player in Scotland’s clean energy transition.

UK Energy Minister Michael Shanks emphasized the government’s commitment to Grangemouth’s future:

"We committed to leaving no stone unturned in supporting an industrial future for Grangemouth, delivering jobs and economic growth.

This report and the £200 million investment by the UK Government demonstrate 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."

Green Industrial Opportunities

The report identifies nine key proposals that could reshape Grangemouth’s future, categorized into three main areas: waste recycling, bio-feedstock, and offshore wind infrastructure.

♻️ Waste Recycling Innovations

1. Hydrothermal Plastic Recycling – Breaking down hard-to-recycle plastics to produce recycled naphtha, vapour, and pyrolysis oil.

2. Dissolution Plastics Recycling – Using chemical processes to dissolve and filter plastics, restoring them to a virgin-like state.

3. ABE Biorefining – Bacterial fermentation of carbohydrate-rich waste to create valuable industrial materials.

🌱 Bio-Feedstock Developments

1. Second-Generation Bioethanol – Breaking down and fermenting Scottish timber into bioethanol, supporting sustainable fuel production.

2. Anaerobic Digestion – Fermenting organic waste and upgrading biogas to biomethane, a cleaner energy alternative.

3. Hydroprocessed Esters and Fatty Acids (HEFA) – Converting Scottish oil seed cover crops into Sustainable Aviation Fuel (SAF) and renewable diesel using low-carbon hydrogen.

⚡ Grangemouth as a Conduit for Offshore Wind

1. Fuel Switching – Replacing natural gas combustion with low-carbon hydrogen to reduce industrial emissions.

2. E-Methanol & Methanol-to-Jet – Utilizing low-carbon hydrogen to produce methanol and convert it into SAF.

3. E-Ammonia – Producing low-carbon ammonia from hydrogen for use in shipping and chemical industries.

Challenges & Next Steps

While the study identifies promising industrial opportunities, several challenges remain. The transition to a low-carbon economy will require significant private investment, infrastructure development, and regulatory support. Ensuring a stable policy environment and securing long-term commitments from investors will be critical to making these projects viable.

The next phase will involve further analysis, engagement with industry stakeholders, and policy alignment to attract investment. Grangemouth's transformation represents a major step in Scotland's clean energy ambitions, but realizing its full potential will depend on continued government and private sector collaboration.