GLASGOW, Scotland: Energy provider INEOS has announced that it will convert its large-scale petrochemicals plant and oil refinery in Grangemouth, Scotland, to run on hydrogen, at a cost of more than $1.4 billion, to enable it to achieve "net zero" carbon emissions by 2045.
The UK has significantly reduced emissions from power generation and aims to reach net zero by 2050, but has struggled to reduce the carbon footprint caused by industry.
The company will initially use blue hydrogen, which is produced on site, to store and capture some 1 million tons of carbon dioxide by 2030, Andrew Gardner, Chairman of INEOS Grangemouth, told Reuters.
To achieve net zero by 2045, "the next stage will be to use green hydrogen," he added.
Green hydrogen is produced through using renewable energy sources, such as wind or solar power.
Before INEOS took over the site from BP in 2005, its annual emissions were some 5 million tons of CO2, but this has now fallen to around 3 million tons and is expected to fall to 1.8 million tons by 2030, Gardner noted.
INEOS, which is a backer of hydrogen investment firm HydrogenOne Capital Growth, said it will take part in the Acorn carbon capture and storage project in Scotland, to store CO2 emissions in the North Sea.