UK pledges £200m to secure Grangemouth future

THE UK government has promised £200m (US$252m) for investment at Grangemouth in a bid to secure the long-term future of the industrial site as the closure of its refinery looms.

The funding will be available for co-investment with the private sector in a bid to secure the future of the site and the UK’s clean energy future. Prime minister Keir Starmer said he hoped it would attract another £600m to ensure Grangemouth remains “an important part of Scotland for generations to come”.

Refinery owner Petroineos announced last year that Grangemouth would cease operations in the second quarter of 2025 with at least 400 workers expected to lose their jobs. It plans to convert the refinery into a fuels import terminal because the refining operation has been losing money and it expects clean energy initiatives will erode demand for petrol and diesel. The refinery is one of only six left in the UK, down from 12 in 2000.

The UK government’s promise of funding follows the Scottish government’s pledge last week to establish a £25m fund to help secure the future of Grangemouth. First minister John Swinney called on the UK government to take urgent action and at least match Scotland’s investment.

Swinney said: “The aim of this fund is to expedite any of the potential solutions that will be set out in the Project Willow report,” referring to a £1.5m study into options for establishing a low-carbon manufacturing hub at Grangemouth. Shortlisted options include producing sustainable aviation fuels, low carbon hydrogen, and fuels made by electrification. The report is expected to be published by the end of the month.

Starmer told reporters: “It is so important to work up the viable options here, we don’t want something to tide people over for the next three to four years.

“It’s a generational opportunity for Grangemouth — that took time, but it was the right thing to do.”

The UK government has said it remains committed to working with the Scottish government to support the refinery workers. It has promised a “training guarantee” for all refinery staff who want skills training at a local college to help them move into new jobs with local employers.

The union Unite, which has been critical of the governments’ responses, welcomed the investment but called for more detail.

Unite general secretary Sharon Graham said: “Following this announcement, it is essential that all stakeholders come together to put the meat on the bones and that this investment counts for jobs and our security. Clear timescales will be important as well as details on jobs.”

Unite has been campaigning to convert the refinery so it can manufacture sustainable aviation fuel, arguing it would help the government meet its environmental targets.

Petroineos welcomed the UK government’s commitment to Project Willow. Iain Hardie, regional head of legal and external affairs at Petroineos, said: “We look forward to continuing to support both governments in the next phase as the project develops to bring together a collation of parties interested in the development of a new low-carbon future for Scotland’s largest industrial cluster.”