£65m bio-diesel plant in Grangemouth shelved

The construction of one of Europe’s largest bio-diesel plants in Grangemouth, near Falkirk, has been shelved due to the economic downturn.

Ineos Enterprises said it was putting the £65m plant on hold indefinitely as it focused on tightening costs during the global slowdown.

The plant would have produced 500,000 tonnes of bio-diesel each year and was originally expected to open this year, reported the BBC.

In a statement, the company said: “Given the continued and prolonged global economic downturn Ineos is focusing on tight control of costs and expenditure across its entire portfolio.

“As a consequence, ongoing plans to invest in new additional bio-diesel capacity across Europe are on hold until Ineos has a clearer picture of the economic outlook.

“Across Europe, manufacturing industry, including chemicals and bio-fuels, is experiencing a period of unprecedented volatility and uncertainty and accurate forecasting is expected to remain extremely difficult in the short-term.”