Chemicals firm MiAlgae today broke ground on a new facility that marks the first confirmed investment in Grangemouth under the task force formed after the closure of the oil refinery.
MiAlgae, which announced its planned investment in April, produces fish-free Omega-3 from whisky byproducts and is seen as a key step in creating a new biotech cluster in the area.
It is expected to create 310 roles over five years, backed by a £3m package of support split equally between the UK and Scottish governments.
The UK funding forms part of the Chancellor’s Budget announcement of £14.5 million to help transform Grangemouth into a low-carbon tech hub and deliver the jobs of the future. It is additional to £200m pledged last year by the Prime Minister from the National Wealth Fund to underpin other potential private investment. None of that money has yet been deployed.
The Department for Energy Security and Net Zero today said around 140 enquiries had been received, and further announcements are expected in the near future.
UK Energy Minister Michael Shanks said: “When we came into office there was no plan for Grangemouth. That’s why we quickly took action to secure the site’s long-term future, while supporting affected workers into new jobs.
“Today we’re taking another step forward as we back the first new project at the site, creating hundreds of new, decent jobs and attracting further investment in the area.”
Scottish Secretary Douglas Alexander added: “The UK Government is backing Grangemouth’s future with real investment and a clear plan.
“We promised to secure the site’s long-term future and create good jobs, and that’s exactly what we’re doing – supporting new industries, creating opportunities, and ensuring this site remains a vital part of Scotland’s industrial heartland for generations to come.
“It is just one of many projects we are working to bring to the site.”
The announcements come ahead of a statement to the Scottish Parliament by Energy Secretary Gillian Martin on progressing a just transition at Grangemouth.
Ms Martin said: “The Scottish Government will continue to do all that it can to support and promote local opportunities, jobs and growth in the Grangemouth area.
She said the jobs being created “demonstrate that a long term, new industrial future at Grangemouth is achievable.
“This funding is only the start of the Scottish Government’s support to help safeguard Grangemouth’s role as a leading industrial cluster, and ensure the site continues to support our economy through new, green investment opportunities.”
MiAlgae last year raised £14m from a funding round that included Equity Gap, Old College Capital and Scottish Enterprise.
Douglas Martin, who set up the company in 2016, said the ground-breaking on a new plant at Grangemouth “marks an exciting new chapter for MiAlgae. Our mission has always been to make a meaningful impact, tackling overfishing, reducing waste, and creating sustainable value from industrial by-products.
“This new facility is a huge step towards delivering that mission at scale, bringing new, high-quality green jobs to the local area, and helping Scotland lead the way in this exciting new biotech industry.”
An additional 149 roles will be created in Grangemouth at Celtic Renewables, following the allocation of £6.23m from the Scottish government to support a new bio-refinery manufacturing ‘green’ chemicals, announced last month.
Waste from the food, drink and farming sector is converted into acetone, butanol and ethanol – chemicals found in everyday items such as nail varnish remover and cleaning products.
The technology was identified by Project Willow as one of the viable alternative pathways which could successfully be deployed within the Grangemouth industrial cluster.
A further £600,000 will be awarded to Scottish Enterprise to support key planning and infrastructure activity at the site to ensure the area is a more attractive and shovel ready location for new investment.
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