A bold plan is underway to secure the future of Grangemouth, Scotland’s only oil refinery, which is scheduled to close next year. The proposal envisions transforming the facility into a biofuels manufacturing hub, utilizing trees, crops, and human waste as feedstocks to produce sustainable fuels.
Consultants are racing against time to develop a comprehensive blueprint aimed at revitalizing the site in Falkirk. The strategy focuses on leveraging domestic feedstocks and advanced recycling technologies to minimize the facility’s climate impact, according to three individuals familiar with the study.
The UK and Scottish governments face mounting pressure to ensure the industrial future of Grangemouth. The refinery’s closure threatens hundreds of direct jobs and underscores the urgent need to facilitate Scotland’s transition to a low-carbon economy.
Project Willow: A State-Funded Initiative
In response to Petroineos’s decision to shut down the refinery, a state-backed task force, Project Willow, has been launched. Petroineos, a joint venture between PetroChina and Ineos, owns the Grangemouth refinery. While both Westminster and Scottish politicians have expressed dismay over the closure, they have yet to commit additional funding to transform the site.
Project Willow is set to deliver a business plan by the end of January, outlining a future for the site centered on low-carbon industrial processes, including green hydrogen production, recycling, and biofuels. The long-term goal is to generate more than 400 new jobs, offsetting the positions lost due to the refinery’s closure.
“There is a strong project set revolving around three big buckets — recycling, biofuels, and hydrogen,” said one individual briefed on the findings.
Potential Economic and Environmental Impact
While green industrial processes may initially create fewer direct jobs than the existing refinery, indirect employment opportunities are expected to flourish. The feedstock supply chain—including forestry, agriculture, recycling, carbon capture, and sewage treatment—could stimulate job creation across multiple sectors.
Key outputs from the transformed facility could include recycled plastics and chemicals, as well as bio-oils derived from innovative processes like sewage sludge conversion. Biomethane, produced from sewage sludge, could supplement the UK’s natural gas grid, providing a sustainable energy alternative.
Strategic Importance
The Grangemouth transformation aligns with broader efforts to decarbonize the UK’s industrial landscape and support energy transition goals. If successful, the project could position Scotland as a leader in biofuels and green technologies while preserving the economic vitality of the Falkirk region.
As the January deadline for Project Willow’s business plan approaches, all eyes will be on Westminster and Holyrood for decisive action to secure the funding and political support needed to bring this ambitious vision to life.