PLANS totalling £1 billion have been unveiled to transform Grangemouth Oil Refinery to net zero.
The facility, which produces 210,000 barrels of crude oil daily, will be run on hydrogen under the blueprint by owners Ineos.
It follows £500 million worth of projects being approved and implemented at the site, which includes investment in a new energy plant due for completion in late 2023.
The firm said that the new energy plant will drive CO2 emissions down by ‘at least’ 150,000 tonnes each year, playing into its roadmap to deliver a reduction of in excess of 60% in greenhouse gas emissions by 2030.
The blueprint involves a move to the production and use of hydrogen by all businesses at the site, accompanied by carbon capture and storage of ‘at least’ one million tonnes of CO2 per year by 2030.
Ineos said that additional contributions to driving down emissions will come from further investments in energy reduction and optimisation, along with electrification of key equipment. An increased level of post-consumer recycled content is also being targeted in its polymer product portfolio.
The Scottish Government net zero secretary, Michael Matheson, said, “I welcome this significant investment, which demonstrates INEOS’ support for Scotland’s journey to becoming a net-zero economy by 2045. This will not only drive forward innovation and diversification to tackle emissions at Grangemouth, but will also support the decarbonisation of other sectors, sites and regions across Scotland.
“Low-carbon hydrogen offers the swiftest decarbonisation route for our industrial sector and today’s commitment by INEOS makes an even stronger case for the UK Government to select the Scottish Cluster, which INEOS partnered with in the summer, to be among the first CCS clusters to be awarded funding through its current cluster sequencing process
“Grangemouth, and INEOS itself, already holds a wealth of experience in engineering solutions and hydrogen production, and this new investment holds great potential for the future of Grangemouth, as well as the vital jobs that are located there, as part of our just transition to net zero.”
Andrew Gardner, chairman of INEOS Grangemouth, added, “We actually have to go much further than the significant CO2 reductions we’ve achieved already. By 2045 we have to be net zero equivalent and we have to set some really ambitious but achievable targets for ourselves for 2030.”