It is deeply disappointing to learn that Petroineos has confirmed its previous decision to close the oil refining operation at Grangemouth. All of my thoughts are with the workers and their families and the wider Grangemouth community. The site will now convert to an import terminal, which will continue to provide a secure and flexible fuel supply for Scotland.
The Government 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 deliver a viable industrial future for the Grangemouth site, with potential for future support from the national wealth fund.
Since taking office, I have taken joint action with the Scottish Government to urgently engage with the company and its shareholders, leaving no stone unturned to find a viable long-term future for the site. As it is clear that there is no viable commercial future for the current refinery operations, the UK and Scottish Governments have today announced a package that seeks to chart a new future for Grangemouth. This includes:
£100 million package for Falkirk and Grangemouth, including £20 million in joint funding from the UK and Scottish 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.
Investment in the site’s long-term future. The £1.5 million joint-funded Project Willow 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. We will work with the community to seek a commercially viable proposition, with the potential for future support from the national wealth fund.
Immediate career support for workers. The UK and Scottish Governments will provide tailored support that will help affected workers in finding new employment—and Grangemouth will be among the first areas that the new office for clean energy jobs will work with to help deliver a just transition.
Alongside the Scottish Government, I will also be holding an extraordinary meeting of the Grangemouth Future Industry Board today to discuss next steps with local industry leaders, Falkirk council, and trade bodies and unions.
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