Tag: Grangemouth

500 jobs protected at Grangemouth as UK Government partners with INEOS to save vital plant’s future

Vital chemical production at Grangemouth protected as Government provides over £120m support package in £150m joint investment

  • UK Government provides over £120m support package as part of £150m joint investment with INEOS to protect vital chemical production and 500 jobs at Grangemouth, plus hundreds more in the supply chain.
  • Unique plant strategically important for UK’s critical national infrastructure, energy, manufacturing, North Sea operations and modern Industrial Strategy.
  • Deal secures operational commitment from INEOS for the plant and multimillion-pound investment from the company.

Britain’s last ethylene plant at Grangemouth has been saved by the UK Government – securing 500 good jobs and hundreds more across the region in the supply chain.

Thanks to a landmark partnership between the UK Government and INEOS, the future of this vital site is now protected, sending a clear signal: this Government is backing workers and their communities across the whole of the UK.

With over £120 million in UK Government support and major investment from INEOS, the Grangemouth plant will stay open with jobs secured.

This huge win keeps the heart of Scotland’s industry beating strong, supports local families, and keeps critical supply chains running nationwide.

This package will help secure the site’s operations and contribute toward improving energy efficiencies, reducing carbon emissions and increasing productivity, helping to secure the site’s long-term competitiveness and sustainability. INEOS has spent over £100 million over the last year maintaining operations at the site.

The Grangemouth plant is vital for the whole UK economy. It produces ethylene which is essential for medical-grade plastics and use in the chemical supply chain. These plastics are also vital to key industries, including advanced manufacturing, automotive, and aerospace, where they are used in nearly every product.

The decisive action from the UK Government is part of its modern Industrial Strategy, which identifies chemicals as a vital foundational sector that underpins the UK’s high-growth industries like defence and advanced manufacturing by producing the materials they all depend on, while also being essential to many supply chains.

The UK Government is backing the chemicals sector through the Industrial Strategy with targeted support to bring down energy costs, including through the British Industrial Competitiveness Scheme – which will slash costs for businesses in sectors including chemicals by up to 25% – and the British Industrial Supercharger, which will save Britain’s most energy-intensive firms money on their electricity costs.

The plant also links to the Forties Pipeline System, which is key for transporting North Sea oil and gas to onshore facilities. Without government intervention, the plant’s closure would have seriously affected hundreds of onsite workers, impacted thousands of jobs regionally, and devastated supply chains.

Business Secretary Peter Kyle formally announced the support yesterday (17 December) during a visit to the INEOS site in Grangemouth with the Chancellor and Scotland Secretary.

Prime Minister, Keir Starmer, said: “When we said we’d protect jobs and invest in Britain’s future, we meant it – and this is proof.

“Through partnership, determination, and our Modern Industrial Strategy, we’re delivering new opportunities, fresh investment, and security for the next generation of workers in Scotland.

“This is about good jobs, stronger communities, and a modern economy that works for everyone.

“Our commitment is clear: to back British industry, to stand by hardworking families, and to ensure places like Grangemouth can thrive for years to come. Promise made, promise delivered.”

Business Secretary Peter Kyle said: “The UK Government’s decision to step in will protect Grangemouth as a site of strategic national importance and secure 500 vital jobs in the area.

“By partnering with INEOS we are backing the plant and its long-term future, giving certainty to workers and the supply chain going forward.

“This approach is part of our Modern Industrial Strategy through which we are working to reduce the cost of energy for industry and support manufacturing in the UK.”

Chancellor Rachel Reeves said: “We said we would stand squarely behind communities like Grangemouth and we meant it.  

“Building on the millions of pounds we’ve already invested in Grangemouth, this vital package protects our national resilience and secures the livelihoods of hundreds of people employed at the site way into the future.”

Scottish Secretary Douglas Alexander said: “The UK Government is investing £120 million today to protect jobs and secure future opportunities at Grangemouth.

“Grangemouth has been at the heart of Scotland’s industrial story for generations, and today we’re ensuring it remains central to our future.

“This is a landmark moment for Grangemouth. This £120 million UK Government investment protects not just the 500 jobs at the plant, but thousands more across Scottish supply chains.”

INEOS CEO Sir Jim Ratcliffe said: “This £150m investment in the future of a major UK industrial site demonstrates INEOS and the UK Government’s commitment to British manufacturing. The support of the UK Government is welcome as we work to deliver competitive and efficient low-carbon manufacturing for the UK, long term. 

“UK Government support for INEOS’ investment shows the strategic importance of making things in Britain. It protects 500 high-value jobs, secures supply chains and preserves the industrial capability the nation needs.”

Through the partnership, INEOS and the UK Government have demonstrated their commitment to operating the site and maintaining jobs. The agreement includes safeguards to protect taxpayers’ money, such as strict assurances that the funding can only be used to improve the site, and also gives the UK Government the right to share in future profits.

The chemicals sector across Europe has faced significant challenges in recent years, including high energy costs, with around 40 percent of remaining European ethylene capacity having recently closed or remaining at risk.

The partnership demonstrates the UK Government’s commitment to working with business to support Scotland and Scottish workers, and contributes towards government’s vision for Grangemouth’s long-term future.

This vision includes £200 million of investment from the National Wealth Fund to support new opportunities in Grangemouth, with projects actively being considered and around 140 enquiries already received.

Last week it was announced that around 310 jobs will be supported over the next five years by the Scottish company MiAlgae, that has started construction on its first commercial scale manufacturing facility that will transform whisky waste into fish-free Omega 3 following £3 million in UK and Scottish government backing.

To support workers at the nearby Exxon Mobil Mossmorran plant which is to close in February 2026, the UK and Scottish governments as well as Fife Council will set up a taskforce to ensure those impacted have the best chance of securing well-paid and valuable employment.

The Grangemouth Training Guarantee will also be expanded to those workers who provided shared services to the refinery, providing new opportunity across local communities.

The UK Government is also working to tackle the challenges of high industrial energy prices at source for Scottish and UK businesses through the modern Industrial Strategy, launched in June.

This includes increasing the discount on eligible businesses’ electricity costs from 60 to 90% through the British Industrial Supercharger scheme, and consulting on the new British Industrial Competitiveness Scheme (BICS), which will slash electricity costs by up to 25% for over 7,000 UK businesses.

Robert Begbie, CEO Commercial & Institutional, NatWest commented: “As the UK’s biggest bank for business, accelerating regional growth is a key priority for us at NatWest.

“We know that this vital funding will support Ineos Grangemouth in remaining a critical site for our national resilience and prosperity, whilst helping protect jobs in Scotland and beyond.”

Funding to support up to 460 new jobs at Grangemouth

Supporting future Grangemouth industries

Up to 460 new jobs are expected to be created at the Grangemouth industrial cluster and surrounding area, thanks to £8.5 million new Scottish Government funding.

Following the allocation of £1.5 million of Scottish Government’s Grangemouth Just Transition Funding to Scottish biotech company MiAlgae, up to 310 jobs are expected to be created over the next five years.

The company is developing fish-free omega-3 out of algae by repurposing whisky byproducts, saving an estimated 30 tonnes of fish for every tonne of algae produced and reducing the impact of over-fishing on fish stocks.  

The funding will be match funded by the UK Government, following calls from the Scottish Government, and will be administered by Scottish Enterprise. It is also expected to deliver an additional £53 million into the Scottish economy over the same period.  

Meanwhile, up to 149 roles will be created in Grangemouth at Celtic Renewables, by 2030  following the allocation of £6.23 million to support pre-construction work for a new bio-refinery at Grangemouth to support the manufacture of ‘green’ chemicals. This is where waste from the food, drink and farming sector is converted into acetone, butanol and ethanol – chemicals found in everyday items such as nail varnish remover and cleaning products.

The technology was identified by Project Willow as one of the viable alternative pathways which could successfully be deployed within the Grangemouth industrial cluster.

A further £0.6 million will be awarded to Scottish Enterprise to support key planning and infrastructure activity at the site to ensure the area is a more attractive and shovel ready location for new investment.

All three projects are being supported through the Grangemouth Just Transition Fund and are designed to encourage further investment in the site by demonstrating its long-term potential as a leader in green energy and sustainable manufacturing, and support initiatives that increase the prosperity of those who live and work there.

An additional £150,000 will be awarded to CVS Falkirk over the next three years through the Falkirk and Grangemouth Growth Deal for the continuation of one role to help ensure community voices are present as part of the delivery of the Grangemouth Just Transition Plan.

The announcements come ahead of a statement to Parliament by Energy Secretary Gillian Martin on progressing a just transition at Grangemouth.

Ms Martin said: “The Scottish Government will continue to do all that it can to support and promote local opportunities, jobs and growth, in the Grangemouth area.

“Today’s announcement will help to support the creation of up to 460 roles directly and across the supply chain in Scotland, and help to highlight the wide range of viable alternatives for Grangemouth. They demonstrate that a long term, new industrial future at Grangemouth is achievable, and will be vital to support the local workforce and community.

“This funding is only the start of the Scottish Government’s support to help safeguard Grangemouth’s role as a leading industrial cluster, and ensure the site continues to support our economy through new, green investment opportunities.”

Jan Robertson, Director of Grangemouth Transition at Scottish Enterprise, said: “It’s wonderful to see this support going to two companies we’ve worked with intensively since their inceptions.

“Seeing MiAlgae break ground on its first commercial-scale plant, as well as announcing the latest stage in Celtic Renewables’ growth journey, are causes to celebrate. Grangemouth is the perfect location for innovative Scottish scale-ups to grow, creating high-quality jobs and supply chain opportunities for the whole community.

“We also welcome the additional £0.6 million Scottish Government funding to accelerate our important infrastructure improvement work at Grangemouth, which will unlock further investment at the cluster and support the creation of new jobs.”

Support for Grangemouth workers

Extra funding for skills intervention expansion

Workers directly impacted by the cessation of refining at Grangemouth are to receive additional targeted support to help them transition into new jobs. 

INEOS O&P employees who were part of shared services for Grangemouth oil refinery and are directly affected by its closure will be able to receive support from Forth Valley College to develop skills for emerging sectors.

The intervention builds on what was put in place earlier this year for refinery workers. That has already enabled more than 300 Petroineos workers made redundant to access careers advice and training and brings the total projected investment from the Scottish and UK Governments up to £2 million. 

Workers have been offered a wide range of training opportunities, including renewable energy upskilling courses and wind turbine engineering courses, paid for and supported by the UK and Scottish Governments. This will provide them with the vital skills needed to secure new jobs, including in the clean energy sector – which currently supports more than 47,000 jobs in Scotland.  

The move supports a key action in the Scottish Government’s Grangemouth Industrial Just Transition Plan – which seeks to position the area as a global leader in green energy and sustainable manufacturing.

Climate Action and Energy Secretary Gillian Martin said: “It is vital that we do what we can as a government to support and promote local opportunities and growth in the Grangemouth area.

“As Scotland’s leading industrial cluster, Grangemouth has long played a vital role to our economy and bringing energy security to the country and it is only right it continues to help lead the way in our journey to net zero through new, green energy opportunities.

“This funding will help affected workers move into sectors such as offshore and onshore wind, hydrogen and carbon capture.”

UK Minister for Energy Michael Shanks said: “We want to ensure workers directly affected by the closure of Grangemouth refinery get the tailored support they are entitled to, with over 300 already receiving advice and training to help them into new employment opportunities.

“This training guarantee will equip this highly skilled workforce to transfer their experience into new sectors as Scotland continues to lead the way in the UK’s clean energy future, alongside our ongoing work to secure long-term industrial future at the Grangemouth site.”

Unite Scottish Secretary Derek Thomson said: “The additional support for Grangemouth based workers will deliver targeted assistance for those facing redundancy due to the closure of the oil refinery.

“The investment by the Scottish and UK governments for retraining will provide INEOS workers with some reassurance that they are not being left behind.

“It will help support them for new job opportunities in the wider energy sector. Unite will continue to do all we can to encourage government, public bodies and companies to deliver a Just Transition for Grangemouth workers and this investment is a step forward in that campaign.”

Grangemouth Just Transition Plan

A recent Strathclyde University study found that Scotland’s renewable energy industry and its supply chain supported more than 47,000 jobs and supported £15.5 billion of output in 2022.

Grangemouth workers receive ‘training guarantee’

  • Over 260 workers have received 1:1 skills support from Forth Valley College to support their transition into new, high-skilled jobs, with 184 workers already beginning training   
  • signals swift delivery of the Prime Minister’s commitment to a ‘training guarantee’ to secure a future for workers, as part of the Plan for Change  
  • Energy Secretary and Energy Minister join Scottish Cabinet Secretary for Net Zero and Energy in first Grangemouth Investment Taskforce meeting today to discuss securing private investment and a long-term future for Grangemouth – backed by £200 million from the UK government, and £25 million from the Scottish Government   

Petroineos refinery workers at Grangemouth are being actively supported through the Prime Minister’s commitment to a ‘training guarantee’ to help secure new well-paid work, as part of the UK and Scottish Governments’ pledge to secure a future for those affected by the closure of the oil refinery.   

The government took swift action to protect workers after Petroineos confirmed their plans to close the refinery, including announcing up to £10 million to provide new skills support that will help the site’s workers into good clean energy jobs, as well as supporting new energy projects in the region. This also included a commitment from the Prime Minister in February to deliver a “training guarantee”.  

This guarantee is now being delivered, with 184 out of 300 workers having now engaged in retraining activity with the majority of the remaining workforce registered for training.  

Workers have been offered a wide range of training opportunities, including renewable energy upskilling courses and wind turbine engineering courses, paid for and supported by the UK and Scottish Governments. This will provide them with the vital skills needed to secure new jobs, including in the clean energy sector – which currently supports more than 42,000 jobs in Scotland.   

Every Petroineos worker affected by the decision to close the oil refinery has now been provided the opportunity for 1:1 interviews with careers specialists at Forth Valley College.  

These will help identify their skills, qualifications and training needs to create a programme of bespoke courses that will ensure their smooth transition into new roles – supporting the next generation of good jobs and driving economic growth as part of the government’s Plan for Change.  

It comes as the Energy Secretary Ed Miliband, Scottish Cabinet Secretary for Net Zero and Energy Gillian Martin and Energy Minister Michael Shanks join the Office for Investment, Scottish Enterprise, National Wealth Fund and Scottish National Investment Bank for the inaugural Grangemouth Investment Taskforce meeting today where they will discuss securing private investment in the future of the site – with 66 enquiries received so far.  

Minister for Energy Michael Shanks said: “The workforce at Grangemouth is highly skilled with significant transferrable experience which our training commitment recognises by providing tailored support for workers into new employment opportunities. 

“As well as continuing to work to secure the site’s long-term industrial future, we want to ensure no worker is left behind and that they are equipped with the skills they need to secure good jobs. This is our Plan for Change in action.”

Acting Cabinet Secretary for Net Zero and Energy Gillian Martin said: “The Scottish Government’s immediate focus has rightly been on supporting workers who have lost their jobs. We committed up to £450,000 to ensure that they are supported and assisted to secure other employment and to contribute their valuable skills to Scotland’s green economy.  

“That is why we are also working to secure Grangemouth’s role in that future and create an investible industrial strategy for the site. It’s clear that real progress is being made on the findings from Project Willow.

“We are working closely with Scottish Enterprise – who are already assessing nearly 70 inquiries aligned to the full range of technologies set out in the report – and we are determined to ensure we realise the full potential for the site’s transformation.”

Scottish Secretary Ian Murray said: “We know this is a worrying time for workers and their families at Grangemouth. I am pleased more than 260 highly skilled workers have already received support from Forth Valley College thanks to funding from the UK government as part of the £100 million Falkirk and Grangemouth Growth Deal package. 

“By offering bespoke training in renewable energy and wind turbine engineering, we’re not just supporting individual workers but also helping Scotland lead the way in clean energy jobs.

“We are determined that Grangemouth will have a green energy future and have committed £200 million through the National Wealth Fund toward that.”

Kenny MacInnes, Principal of Forth Valley College, said: “The College continues to work extremely hard to make sure that all the Petroineos employees affected by the refinery closure, are able to access the support they need as they begin their transition into new training, careers and jobs.  

“We are making learning work in our Forth Valley communities and beyond, and we want to assure everyone that we will continue to be there for them as they take the next steps in their careers and their studies. 

Steven Bell, former Hazardous Areas Technician at Petroineos Grangemouth Refinery, said: “The support I received from Forth Valley College with retraining during the redundancy process has been exceptional.  

“From my 1:1 meetings discussing courses that I would be interested in and what my future career path might be, right through to getting booked onto the courses I had selected, nothing was too much trouble.  

“All in all, I can say I am absolutely delighted with what Forth Valley College have provided for me during this process.”

The training support has helped workers enter new employment. For example, former Hazardous Areas Technician Steven Bell took part in a range of courses that enabled him to renew his Electricians Grade Card, as well as courses in working in hazardous areas which will support him in his new role as a Compliance Supervisor with a company involved in the pharmaceutical and distillery sector.  

It follows the publication of a feasibility report ‘Project Willow’ that provided nine proposals for Grangemouth, backed by £200 million from the UK government and £25 million from the Scottish Government, which will support jobs, unlock investment and drive growth.  

The report sets out various options for the site, including plastics recycling, hydrogen production and other projects that could create up to 800 jobs by 2040. This will help to grow the economy and deliver on both governments’ shared ambition to secure a long-term future for Grangemouth – with Scottish Enterprise already receiving a high level of interest from potential investors.  

The UK government is unlocking Scotland’s clean energy potential and recently awarded £55.7 million to the Port of Cromarty Firth to develop and manufacture new floating offshore wind farms in Scotland.

It has also launched a Skills Passport to support oil and gas workers to identify routes into several roles in offshore wind including construction and maintenance.

ALBA: Grangemouth Closure a “Dark Day for Scotland”

GRANGEMOUTH NO MORE

Petroineos, the company which runs the refinery, has informed staff that all oil refining work at Grangemouth had ended.

Workers were told by email yesterday: ‘With the shutdown of CDU2 today, Grangemouth Refinery will cease processing crude oil and the era of refining at Grangemouth comes to an end.’

The news of the final confirmation of the site has come as a hammer blow to staff and is the latest nail in the coffin of Scottish industry.

Reacting to the news that oil refining at Grangemouth has ended Alba Party Leader Kenny MacAskill said: “This is a dark day for Scotland and a betrayal of the workforce by Labour. At the election, they promised to save the refinery but have gone back on that pledge whilst at the same saving British Steel in Scunthorpe.

“Labour have cynically pocketed the votes of the workers and then abandoned them once elected. This is a betrayal for which Labour will never be forgiven.

“Scotland is now the only major oil producing nation in the world not to have its own refining capacity. 

“The skills of the workforce have been sacrificed and Grangemouth reduced to an import export terminal. 

“This is the cost of the Union and demonstrates how Scotland is powerless without Independence.

“Independence is required so we can protect what is left of Scottish industry and put Scottish workers first.”

The UK Labour Westminster government and the SNP Holyrood government have yet to make an official statement on the end of oil refining at Grangemouth.

UK Government secures raw materials to save British Steel

NATIONALISATION BY ANY OTHER NAME?

The Business Secretary Jonathan Reynolds is pushing ahead with efforts to safeguard British Steel. Today [Tuesday 15 April] he will travel up to Immingham as the raw materials that have been waiting in the dock are unloaded and transported to the site, following the government settling payment for them.

The materials – which have arrived from the US – are enough to keep the blast furnaces running for the coming weeks, with officials continuing to work at pace to get a steady pipeline of materials to keep the fire burning.

A separate ship which contains yet more coking coal is on the way to the UK from Australia. This cargo was the subject of a legal dispute between British Steel and Jingye over the weekend that has now been resolved. The materials have been paid for using existing DBT budgets.

New legislation passed last weekend, in an unprecedented move, gives Government the power to direct the company’s board and workforce, ensure they get paid, and order the raw materials to keep the blast furnaces running. It also permits the Government to do these things itself if needed. 

The government acted to protect 37,000 jobs in supply chains and ensure we can build the infrastructure needed to deliver growth which is fundamental to the Plan for Change.

On Monday, Business and Trade Secretary Jonathan Reynolds confirmed the appointment of Allan Bell as interim Chief Executive Officer, and Lisa Coulson as interim Chief Commercial Officer, both with immediate effect – ensuring the right expertise is in place to keep the site running smoothly.

After intensive work over the weekend, the government has secured coke and iron ore pellets for the blast furnaces and is confident there will be enough materials to keep the furnaces burning.

Business and Trade Secretary Jonathan Reynolds said: “We will always act in the interest of working people and UK industry. Thanks to the work of those at British Steel, and in my department, we have moved decisively to secure the raw materials we need to help save British Steel.

“Our industries depend on UK steel and – thanks to our Plan for Change – demand is set to shoot up: helping build the 1.5 million homes, railways, schools and hospitals we need to usher in a decade of national renewal.”

First Minister: Scotland must be resilient in face of global shocks

‘UK response must reflect changing reality.’

The Scottish Government will take steps to ensure Scotland is as “resilient as we can possibly be” in the face of global economic uncertainty, First Minister John Swinney has said.

Responding to the events of the last few weeks, the First Minister has called for a UK Government response that reflects the fact that “the world is changing around us”.

First Minister John Swinney said: “I know that this is a time of great uncertainty for people, that many families and businesses are worried about what global events will mean for their finances.  That is why I want us to be united and creative in our response, to ensure that we are as resilient as we can possibly be.

“My view is that UK response should include removing the self-imposed economic straitjacket of the Chancellor’s fiscal rules and reversing the job – and growth – destroying increase in employers’ National Insurance contributions. The world is changing around us and quite simply, the UK government needs to change too.

“It should include closer alignment with the European Union. If trade barriers are being constructed across the Atlantic, they must be swept away in the Channel and North Sea.

“And it should include investment in Scotland’s green industrial future.  If British Steel is to be nationalised to protect it, then so too should Grangemouth.

“If a supercomputer is to be built in the London-Oxford-Cambridge triangle, then the cancelled supercomputer for Edinburgh should be restored.

If carbon capture and storage is to proceed on Tyneside and Merseyside, it should be given an immediate green light for the north-east of Scotland too.

“This is what it means to get serious about Scotland’s economic future. Given the scale of the threat, anything less is not good enough.”

Scottish Secretary Ian Murray MP said: “The SNP were told a decade ago that the Grangemouth refinery would close. They and the Tories did nothing. 3 years ago they could have intervened but nothing.

“Labour win in July and suddenly the SNP want to pass blame. Total charlatans. If they truly cared they’d have done something, anything – but ZERO.

“We’ve delivered £200m from NWF, £100m Falkirk growth deal. That’s action.”

Grangemouth: Westminster Committee to question Petroineos, INEOS and EY on Project Willow

Westminster’s Scottish Affairs Committee will examine the future of the Grangemouth oil refinery as part of its inquiry into GB Energy and the net zero transition on Wednesday 2nd April. 

The imminent closure of Scotland’s only oil refinery at the Grangemouth industrial complex, one of Scotland’s major manufacturing facilities, threatens the jobs of around 400 workers. 

This evidence session follows the publication of Project Willow, a feasibility study co-funded by the UK and Scottish governments to examine the viability of new sustainable opportunities at the Grangemouth refinery site. Carried out by consultancy EY, the study identified nine projects that could be developed with private sector investment.  

The cross-party committee of MPs will question the refinery operator Petroineos, shareholder INEOS, and one of Project Willow’s authors, on the study’s findings.

 

Witnesses at 9.30am:  

  • Anu Bhambi, Head of Energy Transition Strategy, EY Parthenon  
  • Iain Hardie, Head of Legal and External Affairs, Petroineos 
  • Colin Pritchard, Sustainability and External Relations Director, INEOS Grangemouth 

Plan for future of Grangemouth?

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.”

project-willow_pid_v214Download

Securing Grangemouth’s future

First Minister writes to Scottish Labour Party Leader

Following news the UK Government will invest in Grangemouth’s future, First Minister John Swinney has written to Scottish Labour Party Leader Anas Sarwar inviting him to vote for the 2025-26 Scottish Budget in a “spirit of cooperation” and deliver investment worth almost £90 million to support jobs at the site.

The full text of the First Minister’s letter to Anas Sarwar: Scottish Budget Bill – Grangemouth Industrial Cluster: letter to Anas Sarwar – gov.scot:

To: Scottish Labour Party Leader Anas Sarwar

From: First Minister John Swinney

Dear Anas,

I welcome the response from the Prime Minister to my call last week for the UK Government to provide support for Grangemouth.

I know you share my concern that the decision to close the Grangemouth refinery is premature and fundamentally short sighted and the UK Government’s commitment to additional investment is a step in the right direction. We all have a responsibility to work collaboratively to secure Grangemouth’s long-term future, its workforce and Scotland’s transition to net zero.

My announcement last week that the Scottish Government will make a further £25 million available to enable businesses to bring forward investable propositions for Grangemouth, will be put to Parliament as an amendment at Stage 3 of the Budget Bill tomorrow.

This funding will be made immediately available from the beginning of the next financial year without requiring match-funding.

I hope that when the UK Government provide more details on the announced £200 million being available through the National Wealth Fund that this will also be available for timely deployment on a similar basis as the funding I have set out and that these funds align to best support a just transition for Grangemouth.

In that spirit of cooperation, I trust that you and Scottish Labour colleagues will now be in a position to vote for the Budget at Stage 3 tomorrow and work constructively to deliver the nearly £90 million investment for Grangemouth, supporting the jobs, livelihoods and businesses which depend on it.

Yours sincerely,

John Swinney