Grangemouth Industrial - just transition plan: supporting a fair transition for Scotland's core manufacturing cluster

Executive Summary

Introduction

The Scottish Government has set ambitious statutory targets relating to climate change and decarbonisation, including a commitment to reach net zero by 2045. To achieve this target, it is vital that the Grangemouth Industrial Cluster is able to sustainably decarbonise.

The significance of the Grangemouth Industrial Cluster lies in its substantial contribution to Scotland’s economy, its carbon emissions and its strategic position as a cornerstone of Scottish industry. The cluster supports thousands of jobs and is a key driver of both regional and national economic activity, particularly in the chemicals and petrochemicals sectors. The knowledge and skills of the Grangemouth workforce will be a critical asset in Scotland’s transition to net zero. Its output not only fuels domestic markets but also contributes significantly to international trade and commerce.

This executive summary provides an overview of the findings and proposals outlined in the wider document. It follows the structure of the Scottish Government’s Just Transition Planning Framework, including a Baseline of findings, our Vision for the future of the industrial cluster and the proposed actions that the Grangemouth Future Industry Board will prioritise to initiate the journey to net zero.

Baseline

The Grangemouth industrial cluster baseline was developed through a series of detailed interviews with stakeholders alongside analysis of available data sets. It provides, where possible, an outline of industrial manufacturing activity and production as well as some of the wider circumstances and impacts on the economy, surrounding town and people of Grangemouth. Currently the ‘Grangemouth industrial cluster’ is taken to be comprised of the following core operators. However, our research has not been limited to this definition:

Our baseline highlights a core manufacturing cluster that offers a Unique Selling Point (USP) of prime industrial land, excellent access to road and rail and shipping, energy and wider utilities infrastructure, a highly skilled workforce with a diverse variety of skills and expertise, substantial strengths in innovation, as well as dedicated supported from a network of industry, public sector and academia.

Overall the cluster is a significant economic asset to Scotland with production across downstream oil and gas, petrochemicals, fine chemicals and pharmaceuticals.

Despite significant macro-economic challenges there is a commitment from industry at Grangemouth to lean into the transition to net-zero and the opportunities this offers for economic growth, jobs & skills, as well as delivering wider benefits for the town and communities of Grangemouth and beyond.

Our baseline also highlights a number of wider circumstances that exist today, including significant land with various environmental and bio-diversity statuses, challenges with access to public transport, a risk of growing skills shortages coupled with a significant gender imbalance across the workforce. Our research shows a clear place-making role that the industrial cluster has on the wider town of Grangemouth, and a desire from community members to be both more involved in decision making that has an impact on their day-to-day lives, whilst also experiencing positive benefits of the transition through enhanced access to jobs, training and green spaces, for example. These aspects have been given full consideration in developing both the vision for the future and corresponding action plan.

For a full breakdown of the Baseline, please see Annex A.

Vision:

Our vision for the future of Grangemouth is that by 2045, the Grangemouth industrial cluster will be a carbon-neutral hub, aiding Scotland in achieving its net zero targets.

The Grangemouth industrial cluster will become a net zero chemicals centre for Scotland and a leading production centre of the UK’s low-carbon energy industry, supporting the developing biofuels and hydrogen sectors, and playing a key role in ensuring Scotland’s energy security and economic prosperity.

The cluster’s industrial partners will collaborate on advanced industrial processes, manufacturing and biofuels, which are exported globally, supporting the Scottish and UK economy. Through active collaboration with the public sector and community, the workforce will power the site: innovating, planning, building and managing the hub with respect and dignity. The Cluster will drive circularity through its value chains, supporting Scotland’s circular economy, providing for equitable prosperity across current and future generations.

Actions

Following consultation on the draft Grangemouth Just Transition Plan, this final Plan sets out 21 actions to help us achieve our vision for the Grangemouth Industrial Cluster. They are grouped under the eight Just Transition levers outlined in the Vision document and cover the near term through to longer terms actions.

Near term actions (in the next 12 months):

• Develop an industry-led technical and commercial cluster strategy
• Deliver £25m Grangemouth Just Transition Fund
• Develop a series of Just Transition conditionalities
• Progressing the next stage of Project Willow
• Establish Grangemouth as a global hub for sustainable chemical technology innovation, scale-up and commercialisation
• Establish a Grangemouth Regulatory Hub to support a Just Transition to net zero.
• Establish a Grangemouth Industrial Cluster Skills pilot that will support the industrial transition
• Provide a Skills intervention for Grangemouth industrial cluster workers facing redundancy as a result of the refinery closure
• Continue to Fund a recognised Community Engagement and Participation Manager
• Develop initial communications and marketing material to enhance engagement and investor relations.

Medium term actions (1 to 3 years):

• Map, consider and develop required changes to create a responsive policy and regulatory environment to enhance the commercial viability of specific industrial transition projects
• Continue to collate and refine the Grangemouth Just Transition Baseline research
• Continue to promote and maintain co-ordination of initiatives across the wider region
• Leverage the value of existing government funding to ensure that the cluster is given required attention.
• Define and establish best practice community engagement guidelines for partners in the Cluster
• continue to develop on the initial findings of a plan to improve public transport links, connectivity and accessibility around the Grangemouth Industrial Cluster

Longer term actions (3 to 5 years):

• Co-ordinate and align community focused projects with the Greener Grangemouth Programme
• explore how local procurement can be utilised to encourage and incentivise operating companies to procure goods and services from local companies
• Develop a supply chain plan for Grangemouth
• create a specific campaign to promote the cluster strategy
• consider the development of an end-to-end communication and marketing programme to promote the cluster