Grangemouth, a major industrial hub in Scotland, has long been associated with significant economic contributions and equally significant environmental pollution. The site, which includes Scotland’s only oil refinery, a massive petrochemical plant, and a North Sea pipeline terminus, is responsible for around 6% of Scotland’s total greenhouse gas emissions. As the push for net zero emissions intensifies, the future of Grangemouth is at a critical juncture.
Grangemouth plays a vital role in Scotland’s economy, generating approximately 4% of the nation's GDP and providing thousands of jobs. However, its emissions footprint is substantial, with around three million tonnes of carbon dioxide emitted annually. The industrial sector, particularly sites like Grangemouth, is a significant source of emissions, second only to transportation.
Efforts are underway to transform Grangemouth into a hub for clean technology. Ineos, which operates key facilities at the site, aims to achieve climate neutrality by 2045, with a 55% reduction in emissions from 1990 levels by 2030. Projects include developing a new energy plant powered by blue hydrogen, implementing carbon capture and storage technologies, and investing in electrification and sustainable feedstocks.
Petroineos, the joint venture running the refinery, plans to cease petroleum refining by next spring, converting the facility into an import/export terminal for pre-processed fuels. This transition could result in the loss of around 500 jobs, highlighting the need for strategic intervention to safeguard employment and leverage new opportunities in sustainable industries.
Newly elected Prime Minister Keir Starmer has pledged to save jobs at Grangemouth and transform it into a hub for future energy industries. His government’s plans include establishing Great British Energy, a public clean power company, and positioning Scotland as a key player in the UK’s green energy revolution. The Scottish Government is also actively involved, with a draft Grangemouth Just Transition Plan set to outline the long-term vision for net zero operations at the site by 2045.
Industry leaders, including Andrew Gardner of Ineos FPS, emphasise the importance of maintaining manufacturing operations in the UK while pursuing decarbonisation. They warn against the economic and environmental pitfalls of offshoring production, arguing that local manufacturing under strict decarbonisation regulations is preferable to outsourcing to countries with laxer environmental standards.
Unions such as Unite support the transition but stress the need for investment to sustain operations until a just transition can be achieved. They advocate for projects like sustainable aviation fuel production, which could preserve jobs and position Grangemouth as a leader in low-carbon fuel production.
The transformation of Grangemouth illustrates several crucial points for associations:
It demonstrates the importance of collaboration among governments, industry leaders, unions, and local communities. Associations play a key role in advocating for and facilitating such coordinated efforts - acting as intermediaries, bringing together diverse stakeholders to align on common goals and strategies.
The need for significant investment in clean technologies—such as hydrogen energy, carbon capture, and sustainable feedstocks—is evident from the Grangemouth experience. Associations are pivotal in promoting research, development, and the deployment of these technologies.
Effective policy frameworks are critical for industries transitioning to low-carbon operations. Associations can engage in policy advocacy to ensure that supportive regulations are in place. Associations can help shape policies that facilitate the adoption of clean technologies and support industry transformation.
Protecting and retraining the workforce is essential as industries evolve. Associations can back initiatives aimed at providing training and development opportunities in emerging green industries. They can help workers transition smoothly into new roles, ensuring that the workforce is equipped for the future.
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At Climate Action for Associations (CAFA), we empower associations to take the lead by providing guidance and vital support, including assistance with emissions reporting. Through promoting community learning, we aid them in fulfilling their sustainability commitments effectively. Learn more here.
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