Ineos Enterprises will invest almost GBP70 million in a green fuel production facility at its Grangemouth site, which, when operational in 2008, will supply around 35% of the UK’s biodiesel needs.

The investment has been backed by GBP9 million of regional selective assistance (RSA) from the Scottish Executive, helping safeguard 410 jobs and creating a further 20 posts at the Grangemouth manufacturing complex, including jobs associated with the construction and operation of the new facility.

The Scottish Executive’s deputy first minister Nicol Stephen said the announcement was a major development not only in reducing carbon emissions but in enhancing Scotland’s role as a leader in the field of renewable energy.

The Grangemouth facility will be the largest single biodiesel plant in Europe, and will not only supply around a quarter of the UK’s total biofuel needs by 2010, but will provide fantastic opportunities for Scottish agriculture to provide the raw materials, Mr Stephen said. The GBP9 million RSA offer is the largest we have ever made to a renewable energy project.