Why Grangemouth is shaping the next phase of Scotland’s bioeconomy
Mark Bustard, CEO at the Industrial Biotechnology Innovation Centre (IBioIC)
Mark Bustard, CEO at the Industrial Biotechnology Innovation Centre (IBioIC)
Scotland’s bioeconomy is often discussed as a future opportunity, yet in Grangemouth, the country’s largest industrial cluster, that future is already beginning to take shape. Following the end of crude oil refining at the site in 2025, Grangemouth is entering a new phase - one that will be defined by how effectively it can adapt its industrial strengths to a changing global landscape. Decisions being made now about where to invest, build and scale will determine whether Scotland captures long‑term value from the transition to low‑carbon manufacturing, or whether that value is ultimately realised elsewhere.
Grangemouth has been part of Scotland’s industrial story for generations, long associated with complex infrastructure, heavy industry and highly skilled jobs, all rooted deeply within the local community. While the closure of refining marks a significant moment of change, it also creates space to reimagine how the site can contribute to Scotland’s industrial future. Today, it is starting to play a new role - applying biotechnology to reshape how materials, chemicals and fuels are produced and demonstrating how established industrial sites can evolve to meet emerging sustainability priorities.
What is happening in and around Grangemouth shows that this transition is already under way. A growing number of companies are choosing the area as a base from which to scale biotechnologies capable of replacing fossil‑derived carbon with sustainable, biologically based alternatives. These are not early‑stage experiments or pilot projects seeking proof of concept. They are businesses making commercial decisions about where to manufacture, recruit and anchor long‑term operations.
This momentum is being supported by targeted public investment and a clear focus on securing new opportunities for the workforce. Recent Scottish Government funding is helping prioritise job pathways for those affected by industrial change, alongside wider investment in projects that are expected to create hundreds of new roles in the coming years. Activity linked to the Project Willow report has also helped to shape a shared understanding of how Grangemouth can develop a low-carbon industrial hub, bringing together industry, academia and innovation partners around a common direction.
Celtic Renewables is one such example. Drawing on by‑products from Scotland’s whisky industry, the company produces sustainable green chemicals that can be used in applications ranging from medicines to materials and polymers. The significance of this work lies not only in its environmental benefits, but in its industrial practicality. These bio‑based chemicals are designed to integrate into existing supply chains, enabling change to happen without requiring entire systems to be rebuilt from scratch.
MiAlgae offers a different, but complementary, illustration of bioeconomy innovation. Using whisky by‑products as a feedstock, the company grows algae to produce omega‑3 for pet food, livestock and aquaculture. This provides a sustainable alternative to fish‑derived sources, reducing pressure on marine ecosystems while strengthening domestic supply chains. It also highlights the wider role biotechnology can play in rethinking food and feed production using processes already embedded within Scotland’s economy.
What unites these businesses is their focus on moving beyond pilot‑scale activity and into sustained manufacturing. At this stage, the requirements for success change fundamentally. Reliable access to utilities, transport links and regulatory expertise becomes as important as the underlying technology. Equally critical is access to people with experience in engineering, operations and industrial process management. Grangemouth offers these conditions, drawing on decades of industrial knowledge that can now be applied to support a new generation of low‑carbon manufacturing.
This capability is central to enabling biotechnology to replace petrochemical‑derived carbon at scale. Rather than displacing existing industry, it allows sites such as Grangemouth to adapt and evolve, retaining their economic value while contributing meaningfully to national net zero ambitions. The challenge, and opportunity, lies in ensuring that this transition is inclusive, supporting existing workers to move into new roles as the site evolves.
The impact also extends beyond chemicals and ingredients. Biotechnology is increasingly addressing challenges linked to the energy transition and materials use.
Sustainable Extricko, for example, is developing technology to recycle composites such as wind turbine blades. As renewable energy infrastructure matures, managing end-of-life materials is becoming an increasingly pressing issue. Combined novel chemical and biologically enabled recycling offers a route to recover value from materials that are currently difficult to reuse.
LiYF Bioethanol offers a further example of how the circular bio-economy can take shape at sites like Grangemouth. The company is advancing a technology that converts agricultural residues into sustainable bioethanol, with a strong focus on applications in sustainable aviation fuel. Its approach combines an integrated bioreactor system with in-house enzyme production, designed to improve process efficiency and reduce production costs at scale. With operations established in Scotland, LiYF reflects the type of innovation that aligns closely with Grangemouth's industrial capabilities, including access to infrastructure, engineering expertise and established supply chains. While not yet deployed at the site, technologies of this kind demonstrate how existing industrial clusters could be leveraged to support the scale-up of low-carbon fuels and accelerate the transition towards a more circular, sustainable manufacturing base.
Taken together, these developments show how biotechnology can act as an enabling platform across multiple sectors - linking energy, materials, fuels and food into integrated circular systems that deliver both environmental and economic benefits.
Scotland’s growing strength in this area is also being recognised internationally. The country is a key partner in the European Circular Innovation Valley, a major collaborative programme designed to strengthen circular economy innovation across regions facing shared industrial and environmental challenges. Through participation by organisations such as IBioIC and Scottish Enterprise, the initiative aims to accelerate collaboration between bioeconomy clusters, supporting investment, knowledge exchange and commercialisation.
What is happening in Grangemouth today reflects a broader shift in how industrial transitions are taking place. Companies choosing to scale here are responding not simply to policy ambition, but to proven capability. Their presence builds confidence, creates momentum and lowers the barrier for others to follow.
Grangemouth’s next chapter will not be defined by a single industry, but a more diverse and resilient industrial base. With the right investment, collaboration and long-term focus, it has the potential to build on its heritage, enabling a new wave of low‑carbon manufacturing while also helping to shape Scotland’s low-carbon future.