Grangemouth petrochemical group Ineos has agreed to splash £54 million on an on-site combined heat and power plant.
The Swiss-headquartered multinational, which secured Government backing for the construction of a new £300m ethane terminal following warnings it could close the site with the loss of around 800 jobs late last year, said its additional investment would “further support the competitiveness” of its plant.
The natural gas fuelled CHP sits on the site of the petrochemical and refinery complex, and is currently owned and operated Finnish energy group Fortum.
“These investments demonstrate what is possible at Grangemouth and represent another key milestone in creating a successful future for the site and those businesses that depend upon its continued presence in Scotland,” said John McNally, chief executive of Ineos’ Grangemouth-based UK Olefins & Polymers arm.
The CHP facility was commissioned in 2001.
Fortum will continue to operate and maintain the small-scale power station.
“The Grangemouth CHP plant is a highly efficient and modern power plant, and as Ineos has a long-term plan to develop the Grangemouth site, this was a good opportunity for both companies,” said Fortum’s vice-president of nuclear and thermal power Sasu Valkamo.