Grangemouth Research Baseline Report

Scottish Enterprise commissioned Optimat to review current research on the Grangemouth industrial cluster to enable informed decisions, identification of strategic opportunities and prioritisation of areas for further investigation. This accompanies and feeds into the main study report entitled “Industrial Cluster Best Practice Analysis”

The research involved collating and reviewing existing literature on Grangemouth, including site-specific reports, relevant Scottish and UK policy documents, and market insights. Publications were categorised based on their strategic importance, direct relevance to Grangemouth, or indirect relevance through insights from other industrial clusters. The analysis was structured around core themes – current infrastructure, economic and sustainability outlooks, social impact, future developments, and recommendations – allowing for a synthesis of key findings and common trends.

Grangemouth currently operates as a loosely connected cluster with industrial activities functioning in silos, further fragmented by recent company departures. The cluster needs a cohesive strategy and clear governance. Grangemouth is at a critical juncture where decisive action is needed to retain industrial activity, particularly in securing necessary infrastructure such as waste treatment and utilities corridors. The lack of clarity around CCS, particularly the Acorn Project’s timeline, hinders investment in carbon capture at the site. Collaboration among companies is limited, yet necessary to ensure the sustainability of shared resources like waste treatment and infrastructure. Public funding alone will not be sufficient to finance Grangemouth’s future, requiring innovative funding models and industry contributions. Engaging the local community remains essential, as the area experiences high levels of deprivation, and stronger connections between industry and community can foster mutual benefits. Skills development is a critical requirement for Grangemouth’s future, with a need for both STEM education expansion and workforce reskilling. Despite challenges, there is optimism about Grangemouth’s potential, as existing assets and opportunities for innovation position it well for a sustainable industrial transition.

A structured, coordinated approach is needed to establish Grangemouth as a fully integrated industrial cluster. A clear, long-term strategy should be developed, with GFIB playing a central role in governance while ensuring streamlined decision-making. Immediate action should focus on securing essential infrastructure, such as a utilities corridor, and identifying tangible steps to support sustainability goals. Efforts should be made to foster industrial collaboration, particularly around shared resources like waste treatment and supply chains, to maximise existing assets and improve efficiency. A blended funding approach should be explored, including industry contributions and innovative financial mechanisms like green bonds, to ensure sufficient investment in both infrastructure and cluster management. Stronger engagement with the local community should be prioritised to enhance employment opportunities, investment, and public perception. Skills development programs should be expanded to support future industry needs. Finally, efforts should focus on highlighting Grangemouth’s industrial strengths and opportunities for innovation, positioning it as a leading hub for sustainable industrial development in Scotland.