Joint plan to secure industrial future of Grangemouth

HOLYROOD and WESTMINSTER GOVERNMENTS RESPOND TO PETROINEOS’ DECISION TO CLOSE OIL REFINERY

The Scottish and UK Governments have announced a joint investment plan for Grangemouth following Petroineos’ decision to decommission its oil refinery and pledged to work together for an industrial future for the site.

The company today confirmed it will cease refining oil at the site during the second quarter of 2025 onwards due to global market pressures and competition from bigger, more modern and efficient sites in the Middle East, Asia and Africa.

This follows years of loss-making, with the company stating that it has lost more than $775 million since 2011 despite having invested more than $1.2 billion to maintain the refinery’s safe operation.

UNITE trade union general secretary Sharon Graeme said the closure is ‘an act of industrial vandalism, pure and simple’.

The Scottish Government has been working with the UK Government to deliver an investment plan that will help secure Grangemouth’s industrial future and protect its skilled workforce.

This includes:

  • £100 million package. This includes £20 million in joint funding from the Scottish and UK Governments announced today on top of £80 million in joint funding from the two governments for the Falkirk and Grangemouth Growth Deal. This funding will support the community and its workers, investing in local energy projects to create new opportunities for growth in the region. Over the next 30 years, it is estimated that the Falkirk & Grangemouth Growth Deal will deliver over £628 million in economic benefits, with an employment impact of 1660 net jobs across the Falkirk Council area.
  • Immediate career support for workers. Scottish and UK Government to provide tailored support that will help affected workers in finding new employment.
  • Investment in the site’s long-term future. The £1.5 million joint-funded Project Willow study has identified a shortlist of three credible options to begin building a new long-term industry at the refinery site, including low carbon hydrogen, clean eFuels and sustainable aviation fuels.

It comes as the UK Government confirmed today it stands ready to engage on how the National Wealth Fund could back projects that have the potential to yield a viable long-term future for the site.

Ministers have confirmed that both governments will put local businesses, workers, and trade unions at the heart of decision-making on determining the region’s industrial future.

Cabinet Secretary for Net Zero and Energy Gillian Martin said: “My immediate thoughts are with the workforce. This is a very challenging time for them and their families, and we will support every worker affected by this decision. 

“We are working very closely with the UK Government and together we have communicated our disappointment to Petroineos today.

“The Scottish Government has consistently made clear our preference was for refining to continue as long as possible, and we have continued to press the shareholders for a positive decision until the 11th hour.

“This significant package of support combines immediate help for affected workers and a long-term contribution to ensure that Grangemouth continues to thrive in the future. We are clear that there should be a just transition for the refinery site and we remain committed to bringing forward low carbon opportunities that will sustain skilled jobs across the wider area for many years to come.”

UK Government Energy Secretary Ed Miliband said: “It is deeply disappointing that Petroineos have confirmed their previous decision to close Grangemouth oil refinery.

“We will stand with the workforce in these difficult times, that is why we are announcing a package of investment to help the workforce find good, alternative jobs, invest in the community and serve a viable industrial future for the Grangemouth site, with potential for future support from the National Wealth Fund.

 “Unlike in the past, the government is working in lockstep with the Scottish Government across every front. Workers and their families should be in no doubt this is a Government that stands with workers, trade unions, and businesses to fight for jobs and investment in Scotland.”

Secretary of State for Scotland Ian Murray said: “I understand this is a worrying time for the workers at the refinery and the UK Government is working closely with the Scottish Government and Petroineos to ensure they are being supported.

“Both governments have invested in Project Willow to examine how Grangemouth remains an energy hub in Scotland. The enhanced £100 million Falkirk and Grangemouth Growth Deal announced today will help ensure the long-term future of the site – a key part of our journey to clean energy by 2030.

“We remain committed to working together looking at how we can help the area build on its skilled workforce and local expertise to boost economic growth.”

The Energy Secretary Ed Miliband and Cabinet Secretary for Net Zero and Energy Gillian Martin have taken joint action to urgently engage with Petroineos, industry experts, and trade unions in exploring all possible solutions to secure a viable industrial site for the future, in the event of a decision from the company to close the refinery.

Ministers continue to urge the company to keep refining open for as long as possible, emphasising the company’s responsibility to its employees and the community. 

As the company has made clear that there is no viable commercial future for the refinery business, the Scottish and UK Governments have today unveiled a package to help the workforce, invest in the area and secure a viable industrial future for the Grangemouth site, as one of Scotland’s key industrial heartlands.

The company’s decision to convert to an import terminal means that their fuel supply will now be maintained by importing refined products directly, rather than importing crude oil to refine on site.

This will form part of the UK’s diverse and resilient fuel market, covering both imported fuel and refined oil production. Since 2013, the UK has been a net importer of refined products, with imports accounting for 51% of UK demand for all petroleum products in 2023.

In response to today’s news from the company, the Energy Secretary Ed Miliband will co-chair an immediate virtual meeting of the Grangemouth Future Industry Board, with Cabinet Secretary for Net Zero and Energy Gillian Martin, and the UK Government Secretary of State for Scotland Ian Murray. Ministers will discuss next steps with local industry leaders, Falkirk Council, trade bodies and unions – ahead of an in-person meeting of the Grangemouth Future Industry Board later in Autumn.

‘AN ACT OF INDUSTRIAL VANDALISM’

Unite, the UK’s leading union, has vowed to explore all avenues to preserve high quality jobs at Grangemouth following the announcement that PetroIneos will go ahead with its plans to close its refinery.

PetroIneos confirmed today that it intends to close the refinery at Grangemouth between April – June 2025 and become an import and export only facility. The announcement places in jeopardy the jobs of the 500 workers directly employed (represented by Unite) at Grangemouth and thousands more in the supply chain.

There is widespread fury within the workplace due to the failure of the bosses and politicians to ensure the future of the site.

Unite general secretary Sharon Graham said: “This is an act of industrial vandalism, pure and simple. 

“This dedicated workforce has been let down by PetroIneos and by the politicians in Westminster and Holyrood who have failed to guarantee production until alternative jobs are in place.

 “This is now the last chance for this Labour government to show whether its really on the side of workers and communities. The road to net zero cannot be paid for with workers’ jobs.

“The government must put its money where its mouth is to ensure the jobs are safeguarded. This is the only refinery left in Scotland and it must remain. There are alternative plans.

“This is yet another example of workers paying for a crisis they did not create while billionaire owners laugh all the way to the bank “

Unite is now in high level talks with the government about alternatives for the site including the production of sustainable aviation fuel.

Derek Thomson, Unite Scottish Secretary said: The sole objective for Unite remains that the jobs at the refinery and thousands more in the supply chain are protected by any means.

“Unite does not accept that the future of the refinery should have been left to the whim and avarice of shareholders. The complex is critical to the nation’s manufacturing base and energy security. The governments involved cannot simply hide behind the convenient smokescreen that this is a commercial decision which they couldn’t influence.”

The Grangemouth complex is of critical strategic economic and infrastructure importance for Scotland and the UK.

It is the only oil refinery in Scotland and it provides four per cent of its GDP and eight per cent of the nation’s manufacturing base.

The Grangemouth support package announced by the Scottish and UK Governments today includes :

Joint Grangemouth support package:

The Scottish and UK Governments have today confirmed a joint £100 million support package for Grangemouth.

This includes a total of £20 million in additional investments, to support the local Grangemouth community following the closure of the refinery. It covers:

  • The £10 million Scottish Government ‘Greener Grangemouth’ programme, that aims to deliver projects at the heart of Grangemouth’s just transition.
  • £10 million from the UK Government for local energy projects, as well as new skills support from the Office for Clean Energy Jobs to help the site’s workers into good clean energy jobs. 

Today’s additional funding comes on top of an £80 million Falkirk and Grangemouth Growth Deal, match-funded by the two governments, to back new industries across the region.

The Growth Deal will support a range of new projects, including:

  • A bioeconomy plant already in the pipeline, which could use waste whisky and food in chemical production processes to reduce reliance on fossil fuels – via technology currently unavailable in the UK.
  • A new £9m technology centre to support the development, manufacture and use of low carbon technologies. This will help companies substitute their products and industrial processes for greener alternatives, and will be linked to wider hydrogen and carbon capture use
    and storage projects.
  • An employment hub led by one of the UK’s largest operators, Forth Ports, will help develop the skilled workforce needed to support emerging energy sectors. The move will help to drive innovation and attract new investment across sectors, such as offshore wind energy, renewable energy production, storage and distribution, and tidal power. 

Immediate career support for workers:

The Scottish and UK Governments are working closely with the company, Petroineos, to provide immediate support for affected workers at Grangemouth refinery, while longer-term projects get up and running on the site.

The trade body Fuels Industry UK will ensure affected Grangemouth workers have direct access to a wide range of potential employers. The association will also work with the specialist skills provider Cogent to host job vacancies from relevant employers for the Grangemouth workforce.

Workers at the refinery will also receive tailored advice, helping them to identify new training opportunities – backed by the Scottish Government’s Partnership Action for Continuing Employment framework.

The UK Government has also confirmed that Grangemouth will be among the first areas that the new Office for Clean Energy Jobs will work with to help deliver a just transition for workers.

Project Willow:

A range of proposals to deliver a viable long-term future for the Grangemouth refinery site have been shortlisted by the UK and Scottish governments, as part of a joint-funded £1.5 million feasibility study. 

The project is exploring how the region can build on its skilled workforce, local expertise and long heritage as a fuel leader in Scotland to forge a new path in clean energy production.

Following an initial research phase, the project has identified three potential industries that could be hosted on the refinery site.  These are:

  • The production of low-carbon hydrogen.
  • Clean eFuels synthesised from chemical components like hydrogen or carbon dioxide
  • Sustainable aviation fuels which use lower carbon sources like forestry and agricultural waste, used cooking oil and carbon captured from the air to produce jet fuel.

These options will now be tested against their potential to create long-term industries in Grangemouth, support new jobs and contribute to the UK’s clean energy transition. The project will engage extensively with the local community, trade unions, businesses, and industrial experts on rapidly assessing the most viable candidates for industrial production on the Grangemouth site.

MPs urged to back training scheme for workers to support just transition

Environmental campaigners and trade unionists have called for MPs to back the creation of an Offshore Training Scheme, as a key solution to removing barriers for oil and gas workers transferring into renewables. 

The idea is backed by offshore workers and MSPs from all parties expressed support for an Offshore Training Passport when it was debated in the Scottish Parliament in October 2021.

The Skills and Post-16 Education Bill is making its way through the UK Parliament, with the final vote to take place tomorrow – Monday 21st February. Caroline Lucas MP has tabled three amendments which would require the UK Government to publish a strategy for the creation of an Offshore Training Scheme within a year. Other parties are being urged to back these amendments.

A 2021 survey of 610 offshore workers by Friends of the Earth Scotland, Platform and Greenpeace UK found 97% of workers said they were concerned about training costs. On average, each worker paid £1800 every year to maintain the qualifications required to work in offshore oil and gas. For any worker looking to move into renewables, they are expected to duplicate much of their existing training, at even greater cost.

Friends of the Earth Scotland’s Just Transition Campaigner Ryan Morrison said: “The skills and experience of offshore workers are vital to enable a rapid shift to renewable energy, but workers cannot be expected to fork out thousands of pounds from their own pocket to duplicate qualifications they already have.

“It is time for MPs to listen to these workers by creating a regulated training passport to ensure a just transition for offshore workers. They have a golden opportunity to do exactly that this week by supporting these amendments.”

94% of workers surveyed supported an Offshore Training Passport to standardise training in the offshore energy industry, removing duplication where possible and significantly reducing the burden of costs faced by often self-employed workers. The amendments put forward by Caroline Lucas would achieve the demands of workers in the industry.

RMT Regional Officer, Jake Molloy said: “The urgency of this issue cannot be overstated. The Trade Unions have been banging this particular drum since the oil and gas downturn of 2014 and the industry and their standards bodies have collectively failed the workforce.

“We need an intervention now; we need the political will and support of MPs across the country to address the injustice of having to pay for work, which is the situation faced by thousands of UK workers! All of the talk about a “Just” transition will continue to be nothing more than ‘talk’ if MPs fail to support this initiative.”

+++ Workers case study (Jack is a pseudonym) +++

Jack*, 39, has worked in the industry for 12 years. He works as a LOLER Focal Point for rigs, having worked his way up from being a trainee rigger.

Jack said: “The companies used to pay for your training costs. So you’d have to cover your first lot of training yourself but after that, once you were established with a company, they would pay for your training because they want you to work for them.

“Now it’s very different. You’ve got to cover all these costs yourself, and they need redoing every couple of years so you’re in this constant cycle, and often the courses do overlap. And some of these agencies are making you pay for your own Personal Protective Equipment that you need to work on an oil rig.

“I have thought about working in renewables, but that’d be thousands of pounds you’d have to pay to work in both industries. It’d just be too much, it costs an absolute fortune just to stay in one sector. 

“I was paid off last year, so my certificates lapsed. I ended up having to pay £3,000 for training to only get four months of work. 

“Shelling out all this money does cause stress, and it does have an impact on your family and your living costs. There’s lots of people worrying about how they’re going to pay the mortgage. I know people who’ve packed it in altogether because working offshore is just too expensive.”

STUC takes CBI to task for ‘highly irresponsible’ call for workers to return to offices

STUC General Secretary Roz Foyer has written to CBI Scotland calling on the organisation to reconsider its public call for a return to offices for non-essential workers.

The letter takes the business organisation to task for contradicting the Scottish Government’s view (shared by the STUC) that there should be a pause in any return to offices where working from home is possible:

“Daughter of furlough”?

TUC calls for permanent short-time working scheme to protect jobs in times of economic crisis and change

  • TUC says government must build on the success of furlough – and set up a permanent scheme to deal with big disruptions to jobs in the future, like the transition to net zero, future pandemics and technological change 
  • Periods of industrial change have too often been mismanaged and led to increased inequality – a short-time working scheme would help prevent this, says TUC 
  • Union body warns of job losses amid abrupt end to furlough scheme 

The TUC is calling on the government to establish a permanent short-time working scheme as “a post pandemic legacy” to help protect working people through periods of future economic change. 

The TUC says the furlough scheme, while far from perfect, is one of the major successes of government policy during the pandemic, protecting millions of jobs and livelihoods. 

On the back of the success of the furlough scheme, the union body is urging government to build on furlough – “not throw away its good work” – with a permanent short-time working scheme to make the labour market more resilient in times of change and crisis.  

The union body adds that because of the UK transition to net zero and the increased uptake of new technology, this is “hugely relevant”.   

Case for a short-time working scheme 

In a new report, Beyond furlough: why the UK needs a permanent short-time work scheme, the TUC says the case for a short-time working scheme is clear, citing significant benefits for workers, firms and government. The union body says for workers, a short-time working scheme would: 

  • reduce the risk of workers losing their jobs in times of crisis  
  • protect workers’ incomes – particularly as short-time working schemes are usually more generous than unemployment benefits.  
  • prevent widening inequalities – protecting women, disabled workers and BME workers who tend to lose their jobs first in a recession due to structural discrimination   

And for the government, it would: 

  • protect against long-term unemployment, and the subsequent devastating impacts on communities 
  • help stabilise the economy, and encourage a faster economic recovery as workers continue to spend their wages 
  • save money, as the cost of furlough schemes is often below the cost of unemployment benefits, particularly where costs are shared with employers. 

For employers, the TUC says that such a scheme would produce significant savings on redundancy, training and hiring costs, as they enable firms to keep skilled workers on their books. 

The union body points out that the UK is an anomaly among developed nations in having no permanent short-time working scheme to deal with periods of industrial disruption and weak demand.  

In the OECD, 23 countries had short-time working schemes in place before the coronavirus pandemic, including in Germany, Japan and many US states. 

Turbulent times ahead 

The TUC predicts that the UK economy is likely to face significant risks in the future – be it from climate change and the transition to net zero, new technologies such as AI, new variants or another pandemic. All could cause unpredictable and widespread disruption in the labour market – causing big spikes in unemployment and business failure.  

The TUC cites failed attempts to manage industrial change in the past, which “left communities abandoned” and played a major role in the widespread regional inequality we see today.  

The union body says that if the government is serious about levelling up, it will put in place a permanent short-time working scheme to prevent inequalities spiralling – adding that a short-time working scheme could play a vital role in achieving a ‘just transition’ to net zero.   

Criteria for accessing scheme 

The TUC says the scheme should be governed by a tripartite panel bringing together unions, business and government, which should be tasked with designing the criteria for the new scheme. 

In designing the scheme, the TUC says the panel should take into account best practice from existing global schemes. The union body has set out the following conditions which it says must be in place for accessing a short-time working scheme: 

  • Workers should continue to receive at least 80 per cent of their wages for any time on the scheme, with a guarantee that no-one will fall below the minimum wage for their normal working hours 
  • Any worker working less than 90 per cent of their normal working hours must be offered funded training. 
  • Firms must set out a plan for fair pay and decent jobs 
  • Firms should put in place an agreement with their workers, either through a recognised union or through consultation mechanisms. 
  • Firms must demonstrate a reduction in demand – which can include restructuring     
  • Firms should commit to paying their corporation tax in the UK, and not pay out dividends while using the scheme. 
  • The scheme should ensure full flexibility in working hours. 
  • There should be time limits on the use of the scheme, with extension possible in limited circumstances. 

TUC General Secretary Frances O’Grady said: “Everyone deserves dignity and security at work. The pandemic shows how an unexpected economic shock can wreak havoc on jobs and livelihoods with little warning. 

“In a changing and unpredictable world – as we battle climate change and new technologies emerge – a permanent short-time working scheme would help make our labour market more resilient and protect jobs and livelihoods.  

“Too often in the past, periods of economic and industrial change have been badly mismanaged – increasing inequalities and leaving working people and whole communities abandoned.  

“Setting up a ‘daughter of furlough’ to provide certainty to workers and firms through future industrial change would be a fitting pandemic legacy. 

“Furlough has been a lifeline for millions of working people during the pandemic. Now is the time for the government to build on the success of furlough with a short-time working scheme – not throw away its good work.” 

Furlough warning 

The call for a permanent short-time working scheme comes exactly six weeks before the furlough scheme is set to end – the date at which employers are legally obliged to start consulting on planned redundancies with their staff.  

The TUC is warning the abrupt end to the furlough scheme will cause unnecessary job losses and may harm the country’s economic recovery. 

Recently, aviation unions have also been raising concerns about the sudden end to the furlough scheme and the loss of jobs in the sector. 

On the ending of the furlough scheme, Frances said: “The jobs market is still fragile, with more than a million people still on furlough. 

“An abrupt and premature end to the furlough scheme will needlessly cost jobs and harm our economic recovery.  

“Instead of pulling the rug out from under the feet of businesses and workers, the chancellor must extend the furlough scheme for as long as is needed to protect jobs and livelihoods.” 

Captain Martin Chalk, Acting General Secretary of BALPA said:  “The UK aviation sector is the only industry to remain effectively in a lockdown.  

“It employs about one million workers directly and ONS statistics show that 57% of remaining employees in air transport companies remain on furlough.  

“The scale of jobs at risk of redundancy when the furlough scheme ends is self-evident, yet the footprint of aviation must not be missed – one in four constituencies has over 1,000 people employed directly by aviation companies.  

“If the Chancellor chooses not to extend furlough, the effects will be felt by workers, communities and businesses right across the country.” 

Diana Holland, Unite Assistant General Secretary, said: “Aviation is crucial to the UK’s economic recovery. It needs furlough support to continue while Covid restrictions apply.

“Airports and aviation support thousands of jobs. Without support all are at high risk.” 

– The full report Beyond furlough: why the UK needs a permanent short-time work scheme is here: 

https://www.tuc.org.uk/sites/default/files/2021-08/PermanentFurloughReport.pdf

BURNOUT BRITAIN: The top industries at risk of burnout revealed in new study

  • Construction named top industry for burnout potential 
  • The tech industry crowned the best industry for avoiding burnout
  • London named the hardest working region 
  • East Anglia has the best work-life balance
  • Agricultural workers most affected by COVID with an 8.1% increase in working hours
  • The hospitality industry sees a -25.8% reduction in working hours during COVID
  • The Burnout Britain study can be found here: https://delamere.com/blog/burnout-britain-the-effects-of-the-glorification-of-grind-culture 

In an age where grind culture is the norm, every industry is working the hardest they ever have, increasing chances of burnout. Delamere reveals the industries and regions most at risk of burnout. 

Burnout is when an individual physically cannot do their job anymore, this could be due to heavy work pressures, long hours or workloads. When you have long exposure to these stressful factors, burnout can be the result. Stress is also a major cause of anxiety and depression.

The Burnout Britain study takes 15 booming industries and regions and scored them on a range of criteria to reveal who is working the hardest. 

Table: Top 15 Industries for Burnout Potential

IndustryIndex Ranking /4
Construction1.21
Manufacturing1.27
Wholesale, retail & auto repair1.37
Administration & support services1.62
Transport & storage1.67
Mining, energy & water supply2.04
Education2.09
Scientific & Technical Activities2.27
Agriculture, fishing & forestry2.30
Arts, entertainment & recreation2.36
Public admin & defence2.48
Health & social care2.59
Financial, Insurance & real estate2.60
Information & communication2.87

Source delamere.com

Construction took the top spot for the industry analysis with 1.21 out of 4, this is due to its long working hours and high mortality rate. The tech industry is the least likely to experience burnout due to its shorter working hours, low mortality rates and good work-life balance. 

Who is responsible for preventing Burnout, Employers or Employees?

Professor Sir Cary Cooper, Advisory Board Member at Delamere Health says: “Stress generally is down to the individual recognising that they are working too hard or long, but it’s a two-way street.

“The individual needs to manage their priorities and manage their health and wellbeing. It’s also down to the employer to set manageable workloads, the boss should be contacting you as an individual if they notice overworking”. 

How Can You Spot and Prevent Burnout

The key component to preventing burnout is spotting the symptoms that lead to burnout. Having someone that will help you recognise and these symptoms are very beneficial. 

Spotting that you have a problem is the first step to resolving it, once you recognise that you are being negatively affected you can start to find the root of the problem and devise a plan to stop it. 

Speaking to someone is incredibly important, whether it is your partner, a friend or a professional, talking about the problem will help significantly. 

‘Shameful’: BiFab Unions issue joint statement

GMB Scotland & Unite Scotland: BiFab Administration

BiFab has filed for administration this morning, following the Scottish Government’s decision to withdraw financial guarantees supporting the manufacturing of eight offshore wind turbine jackets for the Neart na Gaoithe (NnG) project.

Joint Trade Union Secretaries Gary Smith and Pat Rafferty said: “BiFab’s administration exposes the myth of Scotland’s renewables revolution as well as a decade of political hypocrisy and failure, in Scotland and the rest of the UK.

“The workers and communities dependent on these yards have fought so hard for a future and everyone was hoping that 2021 would finally be the turning point.

“Shamefully the Scottish Government has buried these hopes just in time for Christmas and they have worked together with UK Government in doing so.

“A decade on from the promise of a ‘Saudi Arabia of renewables’ and 28,000 full time jobs in offshore wind manufacturing, we’ve been left with industrial ruins in Fife and Lewis.”

 The joint trade unions will comment further in the coming days.

No bailout for BiFab

After exploring all options, both the UK and Scottish Governments have concluded that there is currently no legal route to provide further financial support to BiFab in its current form.

A joint working group will be formed to consider ways to strengthen the renewables supply chain in Scotland and to secure future opportunities.  

In a joint statement, the governments have committed to exploring options for the future of the yards and to strengthen measures to support the renewables supply chain.

Economy Secretary Fiona Hyslop said: “The Scottish Government has been working for more than three years to support BiFab.

“We have left no stone unturned in our search for a solution to the challenges faced by the business. As a minority shareholder, we have been exhaustive in our consideration of the options available to us to financially support BiFab from public funds.

“The Scottish Government has been clear that State Aid regulations are a barrier to us providing guarantees on the contract from Saipem to build foundation jackets for the Neart na Gaoithe (NnG) project. The UK Government has similarly concluded that there is no legal route for them to provide support.

“The situation at BiFab is a culmination of a number of issues, the main one being the unwillingness of the parent company and majority shareholder JV Driver to provide working capital, investment or guarantees for the company.

“We are determined to secure a new future for the yards in Fife and the Western Isles. We will explore options for the future of these sites and, through this new working group, work with the UK Government to strengthen the renewables and clean energy supply chain.”

Joint statement on BiFab from the Scottish and UK Governments:

Following discussion between the UK and Scottish Governments, ministers in both governments have concluded that, in the absence of a shareholder guarantee provided by BiFab’s majority shareholder, JV Driver, there is no legal route for either the Scottish or UK Governments to provide BiFab with the guarantees it would need to secure its contract with Saipem.

The UK and Scottish Governments are committed to investment in renewables and clean energy. The development of a domestic renewables supply chain is a key priority for both governments.

The UK and Scottish Governments are therefore convening a Joint Working Group to explore how existing policy measures can be used to strengthen the renewables and clean energy supply chain in Scotland, and look at options for the future of the sites where BiFab currently operates and other opportunities around Scotland, in a manner consistent with respective devolved and reserved competencies.

Responding to last night’s Scottish and UK Government joint statement concerning the refusal of financial support for the stricken BiFab yards in Fife and Lewis, Joint Union Secretaries Gary Smith and Pat Rafferty said: “Until the Scottish Government publishes the legal advice over its decision to walk away from BiFab, all the difficult questions remain unanswered.

“This evening’s statement is also disappointing given that our members learned of this through the media – it makes a mockery of the so called fair work agenda.

“The demise of Scotland’s best shot at building a manufacturing supply chain for offshore wind is down to a decade of failure from successive SNP and Tory Governments.”

Climate changing carbon dioxide emissions from industrial sites drop 57% in a decade

  • Climate changing carbon dioxide emissions from SEPA regulated industrial sites drop 57% in a decade – down 5% in the last year.
  • 2019 Scottish Pollutant Release Inventory (SPRI) contains data from 1,327 regulated sites published by Scottish Environment Protection Agency (SEPA).

The Scottish Pollutant Release Inventory (SPRI) 2019 data – this year experimental official statistics – was published today 29 September 2020 by the Scottish Environment Protection Agency. This year’s data covers annual mass releases of specified pollutants to air and water and information on off-site waste transfers from 1,327 SEPA regulated industrial sites.

Greenhouse gases

The two largest contributing pollutants in terms of emissions are carbon dioxide and methane which drive the overall greenhouse gas trend. 

While carbon dioxide continues to drive the overall emissions trend and remains the largest contributing pollutant in terms of the emissions for 2019, the data shows Scotland’s carbon dioxide emissions have reduced significantly in the last 10 years. Emissions of the gas are down 57 per cent in the decade and 5 per cent annually to around 11,293,146,000 kg since 2018.

Whilst overall carbon dioxide emissions fell by 5% in the last year, direct emissions from those waste and waste-water management sector facilities required to report under SPRI increased by 76% over the last decade, partly driven by a move towards waste incineration instead of landfill for residual waste management. However, their emissions of greenhouses gases remain small relative to the energy sector.

The shift away from landfill towards recycling and incineration has resulted in further reductions in direct Methane emissions. While methane does not remain in the atmosphere as long as carbon dioxide it is initially far more impactful on the climate because of how effectively it absorbs heat. Methane emissions decreased significantly – by 44% – over the decade to 2019, and by 4% between 2018 and 2019 to 26,777,357 kg.

 201020182019% change 2010-2019% change 2018-2019
Carbon dioxide26,384,456,67811,849,079,76011,293,145,941Down 57%Down 5%
Methane47,912,44227,878,36826,777,357Down 44%Down 4%
Nitrous Oxide250,91289,84696,543Down 61%Up 8%
Hydrofluorocarbons1,4653,5131,263Down 14%Down 64%
Perfluorocarbons1,6044,4183,945Up 146%Up 11%
Sulphur Hexafluoride207107221Up 7%Up 106%

All measurements in kilogrammes.

Energy transition

A number of variables influence SPRI emissions. In the long term, the shift away from use of coal as a fuel is a significant factor. Carbon dioxide emissions from the energy sector have fallen by around 70% since 2010, largely due to the closure of coal fired power stations. As emissions from the energy sector have fallen, releases from other sectors now form a greater proportion of the greenhouse gas emissions reported to SPRI.

Some of the decreases observed for these gases can be accounted for by investment in new technologies and renewables, and landfill gas recovery systems.

Wider economic drivers and the weather are other factors identified as affecting carbon dioxide and other greenhouse gas emissions from SPRI sites.

Circular economy

Scotland’s progress towards a circular economy is also highlighted in both SPRI and separate ‘2019 Waste landfilled in Scotland’ and ‘2019 Waste incinerated in Scotland’ Official Statistics released today by SEPA.

As Scotland reduces, reuses and recycles more than ever before, waste which cannot be recycled is now being diverted from landfill as new energy from waste (incineration) infrastructure comes online. As a consequence methane emissions from the waste sector decreased by 47% over the decade, from a high ceiling of 40,868,900 kg in 2010, to 21,575,000 kg in 2019. Capture of gas at landfill sites has also contributed to the reduction. 

Consequently, as methane emissions from landfill have reduced, carbon dioxide from incineration sites have increased 83% over the last decade from a low base of 1,090,000,000 kg to 2,000,000,000 kg in 2019. Emissions from this sector are small compared to that of the energy sector.

These trends represent direct emissions of greenhouse gases from specific parts of the waste management sector. They do not take into account efforts to reduce, reuse and recycle our waste. Scotland’s Carbon Metric shows that in 2018, the overall impact of Scotland’s waste management system – taking into account reduction, recycling, incineration and landfill – was 30% less than in 2011.

Terry A’Hearn, Chief Executive of SEPA, said: “These experimental official statistics chart the progress we’ve made as a nation with our globally ambitious climate change targets, with some pollutants emitted from regulated businesses falling in the last decade.  They also reflect the realism of a modern, Western European economy in transition.

“The successful businesses of tomorrow will be those that are sustainable.  As Scotland’s environmental regulator, our firm focus remains to helping Scottish businesses innovate and emerge stronger and more sustainably from the current public health pandemic, enabling leadership in a decade of climate emergency.”

Minor year-to-year fluctuations in pollutants can often be attributed to changes at a few sites, due to increases or decreases in production, changing source products and new sites opening. All pollutants have a reporting threshold, below which sites do not need to report a value to SPRI. An increase in production can move a site’s releases above the threshold, giving the appearance of a larger increase.

Unions call for ‘level playing field’ as Scotland loses out on £2.8 billion contract

BiFab trade unions GMB and Unite have today said a ‘level playing field’ is needed if Scotland is to secure the large-scale manufacturing contracts from its own offshore renewables sector – and they are asking the First Minister and the Scottish Parliament to intervene. Continue reading Unions call for ‘level playing field’ as Scotland loses out on £2.8 billion contract

Nearly half of Scottish firms are struggling to hire skilled staff

  • Two in five local employers are struggling to recruit skilled staff and 41% have seen increased staff turnover since the EU Referendum
  • Businesses report this is impacting their growth and expansion efforts
  • To solve the crisis more than half are planning on recruiting more apprentices and many are engaging with education providers

More than a two fifths (44%) of Scottish firms are reporting difficulty recruiting skilled staff, and 41% have seen increased staff turnover since June 2016, according to a new employment and skills study from Lloyds Banking Group and London business membership organisation, London First. The study sought to analyse the impact of Brexit on business recruitment and access to skills across the UK. Continue reading Nearly half of Scottish firms are struggling to hire skilled staff