INEOS is investing £350m in a new state of the art, energy efficient power plant at its Grangemouth site
The new energy plant will modernise steam and power generation to the INEOS petrochemical and Petroineos refining plants, together with the Forties Pipeline System, for decades to come.
Tobias Hannemann, CEO O&P UK says: “This is a huge vote of confidence in Scottish manufacturing and shows our commitment to Scotland for the long term. The investment improves the efficiency and reliability of the Grangemouth site. It forms part of our wider plans to secure a bright future for manufacturing in Scotland and will continue its renaissance as a world class petrochemicals facility.”
INEOS is moving forward with its plans to replace one of its two power stations with a new state of the art steam and power plant. FLUOR Ltd, Farnborough, UK is providing Engineering, Procurement and Construction (EPC) services to the project.
The new plant will replace a 40 year-old power station that has served the site well, ensuring a continuous availability of steam and power to the petrochemical plants, Forties Pipeline System and refinery. However, a replacement is now needed and INEOS is set to invest £350m in a state of the art, modern and highly efficient power station to provide secure energy and utilities as the site grows over the coming decades.
Tobias Hannemann, CEO O&P UK says: “This new energy plant is key to the future development of the Grangemouth site and demonstrates INEOS’ commitment to its businesses in Scotland.”
The power station will form part of INEOS’ £1 billion investment in the UK designed to ensure its British assets stay world class for a generation.
Power and steam are critical to the three main manufacturing operations at the INEOS/Petroineos industrial complex. Grangemouth is home to Scotland’s only crude oil refinery, supplying over 80% of the motor fuels to the Scottish market; INEOS O&P UK operates world scale petrochemical production plants and thirdly, the Forties Pipeline System (INEOS FPS) delivering almost 40% of the UK’s North Sea oil and gas production.
The new energy plant will provide steam and power to all three INEOS businesses as well as have the capacity to supply additional businesses that decide to locate to the site in the future. This investment is good for the environment and good for business as reduced energy costs improve the competitiveness of the site in the global petrochemical, oil and fuels markets.
The construction of this modern power station at the Grangemouth site will support the longer- term viability of a key manufacturing site in Scotland, underpinning the Scottish economy and delivering further improvements in the site’s performance.
Note to editors:
The INEOS Grangemouth site currently has two power stations, the ageing B&C station and the Combined Heat and Power plant (CHP) commissioned in 2001.
Grangemouth Investment: The O&P UK business is undertaking regeneration works at its Grangemouth site. Demolition of old manufacturing plant and buildings is making way for future developments and investments. In 2016, the business completed construction of a high-quality modern office accommodation and business headquarters. It continues to drive forward plans to develop a truly competitive chemical cluster exploiting the key advantages of its location, infrastructure and supply of US shale gas ethane as a feedstock.
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For further information:
David East, Communications Manager,
INEOS O&P UK, Grangemouth, tel. 01324 476948
Richard Longden, Communications Manager,
INEOS, tel. +41799626123