MOSCOW (MRC) -- Ineos has announced GDP1bn of investment in its Grangemouth site, aimed at reducing greenhouse gas emissions to net zero by 2045 - building on a 37% reduction in net CO2 emissions already delivered since acquiring the site in 2005, said the company.
The company has already committed more than ?500m on projects which are currently being implemented, including a New Energy Plant, which is due for completion in late 2023 and will supply energy to all site operations. The latest plans should deliver a reduction in excess of 60% in greenhouse gas emissions by 2030 through a series of investments, partnerships and 'innovative engineering'.
This involves a move to the production and use of hydrogen by all businesses at the Grangemouth site, accompanied by carbon capture and storage of at least one million tonnes per annum of CO2 by 2030. Additional contributions to driving down emissions will come from further investments in energy reduction and optimisation, along with electrification of key equipment. There will also be a shift in polymer product portfolio to include higher levels of post-consumer recycled content.
Andrew Gardner, chairman Ineos Grangemouth, said: “We actually have to go much further than the significant CO2 reductions we’ve achieved already - by 2045 we have to be net zero equivalent and we have to set some really ambitious but achievable targets for ourselves for 2030."
Net Zero Secretary Michael Matheson said: “Low-carbon hydrogen offers the swiftest decarbonisation route for our industrial sector and today’s commitment by Ineos makes an even stronger case for the UK Government to select the Scottish Cluster, which Ineos partnered with in the summer, to be among the first CCS clusters to be awarded funding through its current cluster sequencing process
“Grangemouth, and Ineos itself, already holds a wealth of experience in engineering solutions and hydrogen production, and 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.”
Petroineos operates the Grangemouth refinery and is a joint venture formed between Ineos and PetroChina in 2011. As Scotland’s only crude oil refinery, Petroineos is the primary supplier of aviation fuel for Scotland’s main airports and the major supplier of petrol and diesel across Scotland’s central belt, as well as in Northern Ireland and Northern England.
Ineos O&P UK operates the olefins and polymers petrochemical plants at Grangemouth. The raw materials used by this business present an outlet for North Sea gases, delivered via the co-located Forties Pipeline System.
Its finished products of ethylene, propylene, polyethylene, polypropylene and ethanol are used as the building blocks in a multitude of sectors. Ineos acquired the Forties Pipeline System from BP in October 2017.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.