PRESS RELEASE

INEOS AND PETROINEOS AT GRANGEMOUTH JOIN THE SCOTTISH CLUSTER, PARTNERING WITH THE ACORN PROJECT TO CAPTURE AND STORE UP TO ONE MILLION TONNES OF CO2 BY 2027

The Acorn Project partners (Storegga, Shell and Harbour Energy), are delighted to confirm that a Memorandum of Understanding (“MOU”) has been signed with INEOS and Petroineos at Grangemouth to work together to develop Scotland’s first carbon capture and storage system linking Scotland’s industrial heartland to the Acorn CO2 transport and storage hub in North East Scotland by 2027.

INEOS and Petroineos own and operate one of Scotland’s largest manufacturing sites at Grangemouth. This initiative will cover their entire Grangemouth site and will enable the capture and storage of approximately one million tonnes a year of CO2 by 2027, with the scope to capture further significant volumes beyond this date.  

Today’s announcement presents a pathway for Scotland to help meet its ambitious climate targets through effective carbon capture and storage. INEOS and Petroineos are the latest big industrial emitters to join the Scottish Cluster, which makes use of the Acorn Project infrastructure to enable CCS, hydrogen and other low carbon technologies in Scotland and across the UK.

The Acorn project is currently in the front end engineering and design phase of development and is planned to be operational by the mid 2020’s, with the potential of achieving more than half of the 10Mt/yr of CO2 storage targeted by the UK Government’s Ten Point Plan for a green Industrial Revolution by 2030.

Nick Cooper, CEO of Storegga, the lead developer of the AcornProject said:
‍“The Acorn Project partners (Storegga, Shell and Harbour Energy) are delighted that INEOS and Petroineos have entered into an MOU with Acorn, which is a really significant step in managing Scotland’s industrial emissions. The AcornCCS and hydrogen project is advanced, highly scalable and has clear visibility of a large CO2 customer base. Acorn provides critical carbon reduction infrastructure to the growing Scottish Cluster of emitters and to the wider UK.”

Commenting on today’s announcement, Andrew Gardner, Chairman INEOS Grangemouth, said:
“INEOS and Petroineos at Grangemouth recognise the importance of reducing greenhouse gas emissions from our industrial processes. As a one of Scotland’s largest manufacturers and employers, we acknowledge that we are operating a CO2 intensive industry and we have a significant role to play in helping Scotland reach its Net Carbon Zero target by 2045. We have already made significant reductions since taking ownership of the site and we are delighted to be taking this further by supporting the Acorn CCS Scottish Cluster bid. Once operational, the carbon capture and storage system will provide an essential route to permanently and safely capture and store CO2 emissions for large industrial emitters throughout Scotland with significant positive impact for Climate Change and the country.”

ENDS

For further information please contact:
Camarco (PR and Media) Billy Clegg, Monique Perks, Tom Huddart 020 3757 4983 
Madano (Public Affairs) Andrew Turner, Neil Stockley, James Watson    07702 962043

Notes to Editors

About the Scottish Cluster:
‍The Scottish Cluster unites our communities, industries, and businesses to deliver CCS, hydrogen and other low carbon technologies, supporting Scotland, the UK and Europe to meet net zero goals.  

Supporters and project partners include: Aberdeenshire Council; Aberdeen & Grampian Chamber of Commerce; Acorn CCS and Hydrogen; Alexander Dennis; AREG; Carbon Clean; Carbon Engineering; Celtic Renewables; DOOSAN; Forth Valley College; Fuel Change; Harbour Energy; INEOS; John Mitchell; Macquarie; NECCUS; Net Zero Technology Centre; Opportunity NorthEast; Optimat; Optimus; Orion; Peterhead Port Authority; Petroineos; Petrofac; Rig Tubulars; Scottish Enterprise; Shell; SSE Thermal; Storegga / Pale BlueDot; TCS; Womble Bond Dickinson; and wood.

The Scottish Cluster will create low carbon jobs while sustaining vital industries where it is hard to reduce emissions. 

For more information on the Scottish Cluster, please visit: www.backthescottishcluster.co.uk

About the Acorn project
‍Acorn is one of the most mature UK CCS and hydrogen projects and is positioned to be the most cost-effective and scalable CCS project in the UK. The Acorn Project is currently in the detailed engineering and design phase of development and is planned to be operational by the mid 2020’s, with the potential of achieving more than half of the 10Mt/yr of CO2 storage targeted bythe UK Government’s Ten Point Plan for a green Industrial Revolution by 2030. Acorn is specifically designed to service multiple emitters around Scotland, the UK and Europe. As such, it can rapidly scale up to meet expected demand, with the potential to store more than 20Mt/yr  ofCO2 emissions by the mid 2030’s, in a region that has been traditionally the home to a large proportion of the UK’s world leading oil and gas skills base. The Acorn Project is funded and supported by industry partners (Storegga, Shell andHarbour Energy), the UK and Scottish Governments and the European Union. It is led by Storegga, with Shell working as the Technical Developer for the Acorn CCS Project. For more information on the Acorn CCS and Hydrogen Project, please visit: About Acorn – Acorn CCS (theacornproject.uk)

INEOSand Petroineos
‍Petroineos operates the Grangemouth Refinery and is a Joint Venture formed between INEOS and Petro China in 2011. As Scotland’s only crude oil refinery, Petroineos is the primary supplier of aviation fuel for Scotland’s main airports and the major supplier of petrol and diesel across Scotland’s Central Belt, as well as in Northern Ireland and Northern England. 

INEOS O&P UK operates the Olefins and Polymers petrochemical plants atGrangemouth. The raw materials used by this business present an outlet for North Sea gases, delivered via the co-located Forties Pipeline System. Its finished products of ethylene, propylene, polyethylene, polypropylene and ethanol are used as the building blocks in a multitude of sectors, in the manufacture of everyday household essentials - being transformed into bottles and pipes, cabling and insulation, food packaging as well as being extensively used in the pharmaceutical industry. 

INEOS FPS operates the Forties Pipeline System landing and processing approximately40% of North Sea oil and gas production for onward domestic and international sales. INEOS Acquired the Forties Pipeline System from BP in December 2017. 

INEOS is also involved in Carbon Capture and Storage in Denmark. The Greens and project will also make a significant contribution to our understanding and growth of carbon storage technology, whilst supporting Denmark’s wider CO2emission reduction targets for 2030 and beyond.