THE Scottish and UK governments have announced a joint investment plan to secure the industrial future of Grangemouth, following Petroineos’ decision to close the town’s refinery.
Petroineos confirmed that 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.
The Scottish Government said it 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 a £100 million package, which comprises £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.
Further to this, both governments will provide tailored support to help affected workers in finding new employment. A £1.5 million joint-funded 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.
Scottish Government 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 added, “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.”
