UK and Scottish governments pledge £100 million support as Grangemouth refinery set to close
A £100 million support package has been pledged by the UK and Scottish governments for the Grangemouth oil refinery after bosses announced it is set to close.
Oil & natural gas company Petroineos confirmed to staff at the site on Thursday that Scotland's only oil refinery will close in the second quarter of 2025.
Some 400 jobs are expected to be lost as a result of the decision, which was first announced in October 2023 and will see the refinery switch to become an import-only terminal for fuels.
UK Energy Secretary Ed Miliband and Gillian Martin, acting Net Zero and Energy Secretary for the Scottish government, have both expressed their disappointment at the news.
Petroineos had said last year that the ageing site "faces significant challenges due to global market pressures and the energy transition" - with Grangemouth accruing average daily losses of $500,000 (£380,000) a day over the last week.
Both governments, in the wake of the company confirming its closure plans, unveiled £20 million of joint funding.
The support comes in addition to an already announced £80 million investment package, as part of the Falkirk and Grangemouth Growth Deal.
Altogether, the money will go to help support the local community and also invest in local energy projects to create new opportunities for the area.
Ministers at Holyrood and Westminster also pledged immediate career support for workers, while Project Willow - which was set up and funded by the Scottish and UK governments to look at future prospects for the site - is said to have identified three credible options.
As a result, Grangemouth could transition to focus on either low carbon hydrogen, clean eFuels, or sustainable aviation fuels.
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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."
Martin said the Scottish government is "working very closely with the UK government", adding they have together "communicated our disappointment to Petroineos today".
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While she said the Scottish government would have preferred for "refining to continue as long as possible", Martin added a "significant package of support" has been put in place that "combines immediate help for affected workers and a long-term contribution to ensure that Grangemouth continues to thrive in the future".
She added: "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."
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 it's really on the side of workers and communities."
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