Friends of the Earth: Project Willow “does nothing” for the hundreds of people at Grangemouth set to lose their jobs in the coming months
Plans to secure a long-term industrial future for Grangemouth have been stepped up as a feasibility study sets out nine options for its future.
The plan – which is backed by £25 million from the Scottish Government and £200 million from the UK Government – will support jobs, unlock investment and drive growth.
The £1.5 million feasibility study – published today by EY – follows the recent decision by Petroineos to decommission the oil refinery.
It has identified credible long-term industrial options for the Grangemouth site and explored how Grangemouth can build on its skilled workforce, local expertise and long heritage as a fuel leader in Scotland to forge a new path in low carbon energy production.
The report provides nine proposals likely to attract private investment, including plastics recycling, hydrogen production and other projects that could create up to 800 jobs by 2040.
It follows First Minister John Swinney’s announcement of £25 million to establish a Grangemouth Just Transition Fund, which will support businesses and stakeholders to bring forward investible propositions for the site over the next 12 months, and the Prime Minister’s announcement last month of £200 million to help unlock Grangemouth’s full potential.
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.
“This report sets out a wide range of viable alternatives for the refinery site, demonstrating that a long term, new industrial future at Grangemouth is achievable.
“We will continue to work closely with the UK Government to realise these opportunities and Scottish Enterprise stands ready to support inward investors looking to progress any of these technologies.”
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.”
To kickstart the process, Energy Minister Michael Shanks and Acting Cabinet Secretary for Net Zero and Energy Gillian Martin co-chaired a meeting yesterday (Wednesday 19 March) of the Grangemouth Future Industry Board with local industry leaders, Falkirk Council, trade bodies and unions.
Scottish Enterprise and the UK Government’s Office for Investment will work with Petroineos to market the proposals set out in Project Willow and seek investor interest.
Alongside launching a search for investors, both governments have also committed to review the Project Willow policy recommendations and understand how government funding can be deployed to mature proposals from the private sector.
The nine projects include:
- Waste: hydrothermal upgrading (breaking down hard to recycle plastics), chemical plastics recycling, ABE biorefining (breaking down waste material)
- Bio-feedstock: breaking down Scottish timber into bioethanol, anaerobic digestion of bioresources and digestate pyrolysis, HEFA (conversion of Scottish cover crops into sustainable aviation fuel and renewable diesel using low carbon hydrogen).
- Offshore wind conduit: Replacing natural gas with hydrogen, using low carbon hydrogen to produce methanol and convert it to SAF, producing low carbon ammonia from hydrogen for shipping and chemicals.
Just transition campaigners say Project Willow “does nothing” for the hundreds of people at Grangemouth set to lose their jobs in the coming months, however.
The Project Willow feasibility study, published yesterday:
- Sets out 9 possible options for the future of Grangemouth, all of which would require private investment
- States up to 800 jobs could be created by 2040
- Does not include any support for the hundreds of people set to lose their jobs this year
PetroIneos announced the oil refinery will close by summer 2025. The company instead will import refined oil, effectively offshoring the resultant climate pollution.
Friends of the Earth Scotland just transition campaigner Rosie Hampton commented: “It would be disingenuous to suggest the Project Willow report is a plan for workers and the community at Grangemouth – it’s simply a set of suggestions that would ultimately rely on private investment if they were to happen.
“They haven’t been put together with any involvement from trade unions or workers at the refinery, and it does nothing for the hundreds of people set to lose their jobs when the refinery closes this summer.
“As one of Scotland’s most polluting sites, we’ve known for years that Grangemouth needed a transition plan. There was no excuse for politicians not having the right investment, planning and policy in place, because their inaction has paved the way for the swingeing job cuts by Petroineos.
“It’s welcome that options beyond fossil fuels are finally being considered but the scope of the report has left room for dodgy greenwashing projects which are more about maximising profits for companies than protecting the environment.
“It’s not surprising that a report commissioned by Petroineos using public money doesn’t address that company’s failures to plan for a sustainable future and look after its workforce. The core assumption that private money has to be enticed into investing with government subsidy, for which the public get the risk but not the returns, is a real cause for concern.
“The paper speculates it might be possible to create up to 800 jobs by 2040 but that is 15 years too late for the 400 people at the refinery, and many more across the supply chain, facing the loss of their livelihoods in the next few months.
“The two governments must now set out much tighter criteria for any investments and say how it will build on this to create an actual just transition plan that will protect people and the planet.”
