A low-carbon future for Grangemouth will require around £3.5 billion of private investment, a summary of the long-awaited Project Willow report says.
The £1.5 million study sets out nine options for the future of the industrial cluster in central Scotland.
Hundreds of jobs are set to be lost this year when the oil refinery there closes.
The study identifies nine “feasible” proposals which could attract private investment.
These include plastic recycling, fermenting Scottish timber into bioethanol, and hydrogen production.
Both governments say these projects could create up to 800 jobs by 2040.
Earlier this month, the Just Transition Commission warned it could take years to close the “jobs gap” left by the refinery’s closure.
A summary of the report says the nine projects “have the potential to significantly enhance low-carbon manufacturing across the UK and create a positive future for Grangemouth”.
It adds: “However, the report also underscores the challenges of this transformation as low-carbon fuels and chemicals remain more expensive to produce than fossil alternatives.
“This will require substantial capital investment from the private sector (£3.5bn capital expenditure) and development of new supply chains.”
Commenting on the report, UK energy minister Michael Shanks said: “We committed to leaving no stone unturned in supporting an industrial future for Grangemouth delivering jobs and economic growth.
“This report and the £200 million investment by the UK Government demonstrates that commitment.
“We will build on Grangemouth’s expertise and industrial heritage to attract investors, secure a long-term clean energy future, and deliver on our Plan for Change.”
First Minister John Swinney said: “We will leave no stone unturned in order to secure the future of the Grangemouth refinery site, and the Scottish Government has already committed or invested a total of £87 million to help do so.
“Grangemouth is home to over a century of industrial expertise and employs thousands of highly skilled workers, placing the site at a massive competitive advantage and creating a unique opportunity for investors.
“Everyone working at Grangemouth’s refinery – and in the wider industrial cluster – is a valued employee with skills that are key to Scotland’s economic and net zero future.”
