Grangemouth, home to the UK’s oldest oil refinery, is facing a significant transformation as it prepares to become Scotland’s leading green energy hub. With the imminent closure of Petroineos’ refinery, resulting in the loss of 400 jobs, the site is at a crossroads, requiring a shift towards sustainable industries to secure its future.
A government-funded report, known as Project Willow, is set to be published in the coming days, outlining potential pathways for Grangemouth’s reinvention. The report is expected to highlight the need for the site to transition to renewable energy sources while leveraging its existing infrastructure to produce sustainable products.
Grangemouth’s strategic location is a key advantage. It boasts a sheltered port, extensive energy connections, and underutilised pipelines that could be repurposed for green fuels such as hydrogen or carbon capture and storage. Despite its potential, the site remains Scotland’s largest polluter, contributing 7.2% of the nation’s emissions in 2022. The Acorn Project, a proposed carbon capture scheme that would store emissions in depleted North Sea oil fields, is seen as critical to reducing this footprint. However, it has yet to receive full backing from the UK government.
One confirmed development at Grangemouth is the construction of a new import terminal, ensuring the continued supply of aviation fuel to Edinburgh Airport. Future projects could include a sustainable aviation fuel facility, advanced recycling plants, and a “biorefinery” using waste from the whisky and food industries to create chemical products.
Hydrogen is also expected to play a major role in Grangemouth’s transition, with plans to expand production by 2030. However, challenges remain, as the site lacks suitable underground storage, meaning hydrogen would need to be transported long distances or stored in costly above-ground facilities.
Project Willow will provide detailed projections on costs, job creation, and economic benefits. However, securing the necessary public and private investment will be the real test. While the report marks an important step, the challenge ahead lies in turning Grangemouth from a fossil fuel powerhouse into a green energy leader.
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