In a significant development aimed at securing the long-term future of the Grangemouth industrial site, the UK Government has pledged £200 million in investment. This move follows the Scottish Government’s commitment of £25 million to support the site’s transition towards a low-carbon economy.
First Minister John Swinney has written to Scottish Labour Party Leader Anas Sarwar, urging him to support the 2025-26 Scottish Budget, which includes nearly £90 million for Grangemouth, in a spirit of cooperation.
Grangemouth, one of Scotland’s most significant industrial sites, faces a critical juncture. The oil refinery, owned by Petroineos, is set to close in the second quarter of 2025, with at least 400 jobs at risk. This decision is driven by financial losses and the anticipated decline in demand for petrol and diesel due to clean energy initiatives. The refinery is one of only six remaining in the UK, down from 12 in 2000, highlighting the sector’s decline.
Prime Minister Keir Starmer announced the £200 million investment from the National Wealth Fund, designed to co-invest with the private sector. This funding aims to unlock Grangemouth’s potential and secure a clean energy future for the site. The Prime Minister expressed hope that this investment would attract an additional £600 million, ensuring Grangemouth remains a vital part of Scotland’s industrial landscape for generations to come.
First Minister John Swinney has been proactive in seeking support for Grangemouth. He welcomed the UK Government’s response to his call for investment and announced a further £25 million from the Scottish Government. This funding is intended to support businesses in bringing forward investable proposals for the site, focusing on a just transition to a low-carbon economy.
Both governments are collaborating on Project Willow, a £1.5 million feasibility study aimed at identifying viable long-term industrial options for Grangemouth. The study is expected to report shortly and includes potential projects such as sustainable aviation fuels, low-carbon hydrogen, and fuels produced through electrification. This collaborative approach underscores the commitment to transforming Grangemouth into a hub for low-carbon manufacturing.
In addition to financial investments, the UK Government has introduced a training guarantee for Grangemouth refinery staff. This initiative provides funding for skills training at local colleges, helping workers transition into new roles with local employers. This support is crucial as the site undergoes significant changes.
In his letter to Anas Sarwar, First Minister John Swinney emphasised the importance of cooperation in securing Grangemouth’s future. He urged Scottish Labour to support the 2025-26 Scottish Budget, which includes nearly £90 million for Grangemouth. This investment is vital for supporting jobs and businesses dependent on the site.
The transformation of Grangemouth is not only about preserving jobs but also about contributing to Scotland’s transition to a net-zero economy. The site’s potential as a low-carbon manufacturing hub aligns with broader national goals. The “Future Grangemouth Vision 2025” strategy aims to establish the site as Scotland’s main chemicals and advanced manufacturing center, focusing on sustainable and innovative practices.
The future of Grangemouth hangs in the balance, but with significant investments from both the UK and Scottish Governments, there is optimism about its potential transformation. The collaborative approach between governments and the private sector is crucial for securing a sustainable future for the site and its workforce. As Grangemouth navigates this critical phase, it stands as a model for how industrial sites can adapt to changing economic and environmental realities.
