UK and Nats ministers havbe revealed nine options for the future of Grangemouth.
But they warned they would need £3.5billion in private cash to transform the stricken site into a renewables hub fit for the future.
Grangemouth refinery will close later this year with the cost of 400 jobs[/caption]
John Swinney visited Celtic Renewables in Grangemouth to discuss the Project Willow report[/caption]
And they claimed the plans could create 800 jobs – double the number due to go at Grangemouth this year – but would only happen over the next 15 years
Proposals in the jointly-funded Project Willow report include turning Scotland’s only oil refinery into a plastic recycling plant, one which turns wood into bioethanol, or a hydrogen production site.
At a visit to a renewables firm near the plant, the First Minister was asked if the £3.5 billion figure was remotely realistic, given governments have so far contributed only a small fraction of this.
Mr Swinney said: “Yes, because there’s private investment that wants to make commitments to the journey to net zero.”
The nine options include two options for a sustainable aviation fuel site, hydrogen production, e-ammonia production, two types of plastic recycling, biorefining “carbohydrate rich” material, turning wood into bioethanol, or producing biomethane from organic waste products.
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But the report, authored by consultancy giants EY, warned there would be “challenges” in delivering the potential boost to the site.
It states: “These initiatives have the potential to significantly enhance low-carbon manufacturing across the UK and create a positive future for Grangemouth.
“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 and development of new supply chains.”
Sustainable aviation fuel was among the suggested routes forward, a suggestion backed by unions.
Unite saying the plant could be converted “relatively easily” over a few years to produce the fuel.
The Project Willow document says SAF operations would commence in 2035, with a capital expenditure of up to £2.1 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.
At the Scottish Affairs Committee in Westminster yesterday, he said: “What we’re saying is, if you’re going to accelerate anything in Project Willow, accelerate the sustainable air fuel plant.
“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.”
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 £200 million investment by the UK Government demonstrates that commitment.
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.”
