INEOS plans low-carbon hydrogen manufacturing plant in Grangemouth, UK; company is inviting bids from engineering firms to design a carbon capture-enabled plant

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January 27, 2022 (press release) –

  • INEOS takes the next significant step towards delivering a sustainable future for its businesses at Grangemouth with a move to low carbon hydrogen fuel
  • Investment in a world-scale low-carbon hydrogen plant is the cornerstone of the site’s Road Map to Net Zero, underpinning a commitment to deliver emissions savings of more than 60% across the site by 2030
  •  Andrew Gardner, CEO and Chairman at Grangemouth: “This is an exciting development and an important step forward for our site. We are determined to reduce our own emissions to Net Zero by 2045, create products that will help others reduce their emissions and play a leading role in a clean hydrogen revolution”

INEOS is today taking the next significant step in its Road Map to deliver a sustainable, Net Zero carbon future at Grangemouth, by inviting major engineering design contractors to tender for the next stage of the design of a world scale carbon capture enabled hydrogen production plant and major associated infrastructure.

Stuart Collings, CEO INEOS O&P UK, said, “We are progressing at pace with our commitment to deliver our Net Zero plans. This will see the displacement of hydrocarbon fuels used at Grangemouth, like natural gas, with clean, low carbon hydrogen to power our processes and manufacture vital materials used across a wide range of sectors. To achieve this, we are inviting  bids from the best engineering companies to design both a state of the art carbon capture enabled hydrogen production plant and an extensive suite of related infrastructure projects. The carbon dioxide from this project will be routed to the Scottish Cluster’s Acorn CO2 transport and storage project, resulting in reductions of more than one million tonnes of carbon dioxide emissions each year.”

INEOS has already committed over £500m on active projects across the site including investment in a New Energy Plant which is due to commission in late 2023. This power plant will employ highly efficient technology to supply energy to all our site operations and will drive down emissions by at least 150,000 tonnes of CO2 per annum. This new power plant will then be converted to run on hydrogen which will further reduce CO2 emissions.

Access to locally produced hydrogen will have benefits for other assets at the Grangemouth Site, fuelling the existing Combined Heat and Power Plant, the KG Ethylene Plant and assets in the Petroineos Refinery. This will require a new hydrogen distribution network throughout the site and modifications to the existing fuel gas network, all of which are captured within the scope of the engineering design. The scope of design is also planned to provide capability to link the hydrogen production to third parties in the local area to support development of a local hydrogen hub.

Underpinning our Hydrogen project will be access to the Scottish Cluster carbon capture and storage (CCS) infrastructure. In excess of 1m tonnes per year of CO2 from our hydrogen plant will be sent directly offshore through existing gas pipelines to be permanently stored in rock formations deep below the North Sea. We are fully committed to the Scottish Cluster CCS project. We believe it will be an important part of both Scotland and the UK’s drive to Net Zero.

Andrew Gardner, Chairman INEOS Grangemouth commented: “The construction of a world scale low carbon hydrogen plant is an exciting development at Grangemouth and one that will deliver on our commitment to achieve Net Zero by 2045. It builds on the significant CO2 reductions we’ve already made at Grangemouth since we acquired the site in 2005. We are determined to reduce our own emissions to Net Zero, create products that will help others reduce their emissions and play a leading role in a clean hydrogen revolution.”


INEOS Olefins & Polymers (UK) Europe operates the petrochemical plants at Grangemouth. The raw materials used by this business present an outlet for North Sea gases, delivered via the co-located INEOS-owned Forties Pipeline System. Our finished products of ethylene, propylene, polyethylene, polypropylene and ethanol are used as the building blocks in a multitude of sectors, in the manufacture of everyday household essentials - being transformed into bottles, cabling and insulation, food packaging as well as being extensively used in the pharmaceutical industry. They also support and enable these other sectors to reduce their own greenhouse gas emissions.

About INEOS FPS
The Forties Pipeline System is a 100% INEOS-owned integrated oil and gas liquid transportation and processing system and is the largest pipeline system in the UK North Sea. The FPS is a critical Central North Sea transport infrastructure system and in 2020 transported over 30% of the UK’s total oil production from the UKCS to the mainland. The Forties Pipeline System primarily comprises a 169km 36-inch offshore pipeline from Forties Platform Forties Charlie via the unmanned Forties Unity platform to the onshore terminal at Cruden Bay. From there a 36-inch onshore pipeline transports the liquids 209km south to the Kinneil facilities, where the crude oil is processed and stabilised to produce Forties Blend before output is sent either for export via the Dalmeny terminal and Hound Point loading jetty or on to the Grangemouth refinery.  

INEOS and Petroineos at Grangemouth fully support the Scottish Government targets to reduce emissions to net zero by 2045 as part of a just transition to a low carbon economy.  In September 2021 it announced the next phase of its Road Map to deliver emissions savings of more than 60% across the site by 2030 as it continues to make reductions towards net zero emissions by 2045 in Scotland.

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