‍What’s happening? Up to 460 jobs are set to be created at the former Grangemouth oil refinery site in Scotland under two government-backed projects. Biotech firm MiAlgae aims to directly employ 130 staff and support an additional 180 roles by producing fish-free omega-3 supplements using whisky industry by-products. It has received £1.5m ($2m) from UK and Scottish government funds. Celtic Renewables, which transforms food, drink and farm waste into biochemicals such as acetone, ethanol and butanol, plans 149 posts having secured £6.23m from Holyrood towards the construction of a £120m biorefinery. Ministers said the investments mark a major step in securing Grangemouth’s future as a green industry hub. (Sky News)

‍

Why does this matter? By-products and waste hold valuable potential as chemical feedstocks. Taking a circular “waste-to-chemicals” approach will reduce reliance on fossil fuels and lower greenhouse gas emissions, while creating a more sustainable chemical industry. It will also help alleviate the growing problem of resource scarcity and generate new revenue streams. Additionally, it could encourage chemical recycling as the disposal of hazardous waste is becoming increasingly difficult. Innovations such as pyrolysis, depolymerisation, anaerobic digestion and gasification will support this emerging area, although there are technological and scaling challenges that need to be addressed.

‍

Innovation on the rise – A recent patent data analysis by UK-based IP law firm Appleyard Lees shows that there has been a sustained increase in innovation around sustainable chemical feedstocks. including plastic recycling, agricultural waste and biomass. The progress report, now in its fifth edition, reveals strong patent activity post-Paris Agreement. Europe leads globally in filings, especially for bio-based construction materials such as cellulose and lignin. However, recent declines in some areas suggest a maturation phase, where the focus may be shifting towards improving efficiency and scalability. The direction and intensity of future patient filings will largely depend on the strength and clarity of government regulations, investment and ability to demonstrate affordability and scalability of new technologies.

‍

Bold ambition – The UK aims to become a global leader in green chemistry with the establishment of Great British (GB) Chemicals in June. Led by Sheffield, Newcastle and Nottingham universities, the £22.5m initiative is supported by the Engineering and Physical Sciences Research Council (EPSRC) and the Natural Environment Research Centre (NERC) with a seven-year plan. Backed by 10 universities and more than 33 industrial stakeholders, the centre intends to replace fossil petrochemicals with cleaner alternatives. The UK chemical sector is worth £65.5bn annually and underpins vital industries. GB Chemicals, which aligns with the UK government’s Industrial Strategy will accelerate lab research to commercial scale, develop low carbon technologies and foster the skills, innovations and entrepreneurship needed for the transition to a circular, net-zero economy.

‍

The future of Grangemouth – Grangemouth stopped processing crude oil in April 2025 having been operational for a century. The closure resulted in the loss of 400 jobs, so the announcements from MiAlgae and Celtic Renewables are welcome news. The funding came from the Scottish government’s Grangemouth Just Transition Fund and the UK government’s £14.5m commitment to help convert the site into a low-carbon tech hub. Other opportunities have already been identified in the Project Willow report. These include hydrothermal and dissolution plastics recycling, second generation bioethanol from Scottish timber and timber waste, hydrogen fuel switching, anaerobic digestion, e-methanol for aviation fuel and e-ammonia for shipping and chemicals.

‍

Between £3.8bn and £12.9bn of private investment and the development of new supply chains will be needed to move all projects forward over the next 20 years. This may prove difficult without policy and regulatory changes that would encourage investors to participate, actions that are also needed to support growth in wider green chemicals space.