A new report into the long-term industrial future of Grangemouth has suggested transforming the town’s refinery into a plastics recycling facility, which could aid the UK’s impending deposit return scheme (DRS).
The £1.5 million feasibility study, published by EY, follows the recent decision by Petroineos to decommission the oil refinery.
A range of long-term industrial options are identified in the report which would look to build on the town’s skilled workforce, local expertise, and its heritage as a fuel leader in Scotland.
Of the nine proposals listed as likely to attract private investment, EY identified plastics recycling as an option – including dissolution plastic recycling, which is noted as having the potential to take certain types of plastic back to a ‘virgin-like’ state.
Bottle top regrind is the initial proposed feedstock for dissolution plastic recycling, with EY adding that this method of recycling is expected to grow – particularly upon the launch of the UK’s DRS. The method does not require a separated plastic stream, which would support the current Scottish and UK recycled products market.
Hydrothermal plastic recycling is also suggested, which would allow for a mixed plastic waste feedstock to be recycled into products such as naphtha and vapour that can be refined into a number of products.
ABE biorefining is another suggestion, which requires a carbohydrate-rich feedstock which EY notes could come from a wide variety of Scottish secondary by-products and wastes from sectors such as packaging, drink, and food.
The report also proposes other uses such as breaking down Scottish timber to produce bioethanol and using animal waste and sewage sludge to create biomethane, which could then be used by local companies.
The report follows the UK Government’s announcement of £200 million to unlock Grangemouth’s full potential and the Scottish Government’s commitment of £25 million to establish a just transition fund.
First minister John Swinney said, “We will leave no stone unturned in order to secure the future of the Grangemouth refinery site, and the Scottish Government has already committed or invested a total of £87 million to help do so. Grangemouth is home to over a century of industrial expertise and employs thousands of highly skilled workers, placing the site at a massive competitive advantage and creating a unique opportunity for investors.
“Everyone working at Grangemouth’s refinery – and in the wider industrial cluster – is a valued employee with skills that are key to Scotland’s economic and net zero future. This report sets out a wide range of viable alternatives for the refinery site, demonstrating that a long term, new industrial future at Grangemouth is achievable. We will continue to work closely with the UK Government to realise these opportunities and Scottish Enterprise stands ready to support inward investors looking to progress any of these technologies.”
UK energy minister Michael Shanks added, “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. 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.”
