Ineos seeks partner to build Grangemouth hydrogen plant

Petrochemicals producer Ineos intends to build a blue hydrogen production plant at its Grangemouth chemicals facility in Scotland, and has invited engineering contractors to bid in a tender process.

Ineos did not disclose the size of the investment and said the plant's capacity will be determined by the engineering study. It did not disclose an end date for bidding, but said it will commission the plant by 2030.

The company aims to reduce emissions at Grangemouth by 60pc by 2030, and to net zero by 2045. It expects to capture at least 1mn t/yr of CO2 emissions from the hydrogen plant by 2030, which will be sent to the Scottish Cluster carbon capture and storage (CCS) project in the North Sea. Ineos will use the low-carbon hydrogen to displace hydrocarbon fuels in its processes and manufacturing at Grangemouth.

Ineos has already spent £500mn ($675mn) on projects at the site, including a new and more efficient power plant due to commission in late 2023, which will be converted to run on hydrogen in the future. Hydrogen could be deployed at the site's existing combined heat and power plant, KG ethylene plant and assets in the 210,000 b/d Grangemouth refinery.

Ineos expects the design to include a network of hydrogen pipelines, and the capability to link hydrogen production to third parties in the area to support development of a local hydrogen hub.

By Aidan Lea