SCOTLAND and the UK has been left out of an initial wave of hydrogen plants announced by Sir Jim Ratcliffe, who owns the huge petrochemical site at Grangemouth, after he revealed plans for factories in Germany, Belgium and Norway.
The billionaire’s company Ineos is to invest more than €2bn into electrolysis projects to make zero-carbon green hydrogen across Europe in a move that could have a major effect on the motoring industry.
The company is is hoping to ‘transform’ zero carbon hydrogen production with what will be Europe’s largest ever investment i electrolysis projects.
The first plants will be built in Norway, Germany and Belgium in the next 10 years.
It comes after Ineos brokered a landmark deal with Hyundai last year.
Ineos said that it also intends to invest in France and the UK, where the hydrogen business will be headquartered, but did not give details.
The chemicals giant and the South-Korean car maker signed a memorandum of understanding that will "explore new opportunities", including hydrogen fuel cell technology being applied to the new Land Rover Defender-rivalling 4×4.
Sir Jim Ratcliffe, chairman of Ineos and one of Britain's richest men says Europe is currently "crying out" for more investment in green hydrogen.
He said: "Green hydrogen represents one of our best chances to create a more sustainable and low carbon world.
“Europe is crying out for more investment in green hydrogen and Ineos’ announcement today shows our determination to play a leading role in this important new fuel.”
The Ineos hydrogen business will have its headquarters in the UK and aims to build capacity to produce hydrogen across its network of sites in Europe, in addition to partner sites where hydrogen can accelerate decarbonisation of energy.
The move comes less than a year after Ineos abandoned plans to build a state-of-the-art car plant in Wales, announcing that it would build its new 4x4 Grenadier cars at a former Mercedes-Benz factory in France instead.
It had previously pledged to build the Grenadier in Bridgend, Wales, creating up to 500 jobs.
In January, Mr Ratcliffe snubbed politicians investigating transforming Grangemouth into a carbon neutral hub.
The Scottish Government had set up the Grangemouth Future Industry Board which will “ensure the significant opportunities for low carbon economic growth are maximised” and attempt to “unlock potential investment and identify policy levels that can support sustainable growth”.
The Scottish Government said at the time that the board was at an “early stage” of development and would have “decarbonisation woven through all aspects of its work”.
Ministers also committed £60 million to support the industrial and manufacturing sectors’ transition to net zero.
The strategy for Grangemouth and wider heavy industry points to carbon capture and storage being scaled up – with ministers considering using “Scotland’s vast storage potential” to import “CO2 via ship from European carbon capture projects”, which officials hope could lead to “opening up the potential for a CO2 transportation economy”.
Despite calls from campaigners to speed up decarbonisation, Ineos has warned that if its operation is halted or scaled back quickly, its products “will be manufactured elsewhere and transported back to Scotland, adding significantly to the global emissions”.
The Ineos plant at Grangemouth has an annual turnover of £1.2 billion and supports around 900 direct jobs and around 5,000 indirect employees. Around 30 per cent of Scotland’s GDP flows through Grangemouth Port.
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