The UK and Scottish governments have announced a joint investment plan for Grangemouth including a £100 million funding package following confirmation from Petroineos that it will decommission its oil refinery.
The governments pledged to work together “for an industrial future for the site.”
“The company has 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,” said the governments.
“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.
“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.”
The £100 million package 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.
The Scottish Government’s 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.”