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INEOS Grangemouth receives £5m support for furnace upgrade

Furnace 10 at the INEOS O&P UK chemical manufacturing plant in Grangemouth.

INEOS O&P UK has received £5 million in Scottish Enterprise funding towards a new energy-efficient furnace at its Grangemouth chemicals plant, helping safeguard more than 100 manufacturing jobs.

The funding, announced on 29 October 2026, supported the installation of Furnace 10 at the company’s olefins and polymers production facility.

Scottish Enterprise says the completed project will improve productivity and reduce carbon emissions by up to 25,600 tonnes of CO₂ equivalent a year.

New furnace improves efficiency at Grangemouth

Furnace 10 has been installed at Grangemouth’s ethylene production plant, the only facility of its kind operating in the UK.

According to INEOS, the new equipment uses more efficient technology to reduce energy consumption and emissions while providing additional production capacity.

The project received £5 million through Scottish Enterprise’s Environmental Aid funding programme.

Nick Williamson, chief executive of INEOS O&P UK, said: “Its advanced design brings Best Available Technology, supports lower energy intensity and reduced CO₂ emissions, while delivering the additional capacity needed to meet sales commitments.”

INEOS O&P UK manufactures chemicals used to produce materials for industries including food packaging, construction, healthcare and renewable energy.

Funding builds on earlier £150m investment

The latest support follows a separate £150 million investment package announced by INEOS and the UK Government in December 2025.

That package included a £75 million government loan guarantee and a £50 million grant to support the continued operation of the Grangemouth chemicals facility. The announcement said the investment would protect more than 500 jobs at the site.

Scottish Enterprise’s latest funding relates specifically to the Furnace 10 project, which the agency says safeguards more than 100 jobs.

Jan Robertson, managing director of energy transition and transformational programmes at Scottish Enterprise, said the funding had helped INEOS complete the project, improving productivity and reducing emissions.

The agency is also working with the Grangemouth Future Industries Board on further industrial investment and development proposals in the area.

The funding comes amid contrasting developments in Grangemouth’s chemicals sector. In October, Syngenta proposed closing its Grangemouth manufacturing site, putting 377 jobs at risk.

The INEOS O&P UK chemicals plant is separate from the neighbouring Grangemouth oil refinery, which ceased crude oil refining in April 2025.

Sources