Ineos invests in hydrogen plan for Grangemouth
The Grangemouth plant will become net zero (pic: Terry Murden)
Chemicals company Ineos will convert its plant at Grangemouth to run on hydrogen at a cost of more than £1 billion, it has announced.
The move will make it ‘net zero’ for carbon emissions by 2045, five years before the UK government’s target.
Andrew Gardner, chairman of INEOS Grangemouth, said the company, which operates oil, chemical and power plants at the site, would initially use gas to produce its own hydrogen, so-called blue hydrogen, with at least one million tonnes of carbon dioxide (CO2) stored and captured by 2030.
“The next stage would be using green hydrogen,” Mr Gardner said, to bring the entire site to net zero by 2045.
He said the emissions targets are “really ambitious, but achievable” and represent the “next step” in the evolution towards a low-carbon economy.
“Climate change is one of the most urgent environmental, economic and social issues of our time,” he said.
Green hydrogen is produced using renewable power sources such as wind or solar.
Mr Gardner said the plant was producing about five million tonnes of CO2 annual emissions when INEOS took over the site from BP in 2005.
This is down to three million tonnes a year and is expected to fall to 1.8 million tonnes by 2030.
INEOS said in July it would work with the Acorn carbon capture and storage project in Scotland, which aims to store CO2 emissions in the North Sea.
It has also backed hydrogen investment firm HydrogenOne Capital Growth.
Ineos operates Scotland’s only crude oil refinery, as well as producing polymers used as the building blocks for products across a variety of sectors, including pharmaceuticals, agriculture, construction and transport.
Scottish net zero secretary Michael Matheson has welcomed the hydrogen plan.
“This will not only drive forward innovation and diversification to tackle emissions at Grangemouth, but will also support the decarbonisation of other sectors, sites and regions across Scotland,” he said.
“This new investment holds great potential for the future of Grangemouth, as well as the vital jobs that are located there, as part of our just transition to net zero.”