Plan to secure industrial future of Grangemouth as oil refinery ends

The UK and Scottish Governments have responded to Petroineos’ decision to close Grangemouth oil refinery.

The governments have announced a joint investment plan for Grangemouth following the decision to decommission the refinery.

Petroineos will cease refining oil at the site during the second quarter of 2025, citing global market pressures and competition from bigger, more modern and efficient sites in the Middle East, Asia and Africa.

The government plans include £20mln in joint funding from the UK and Scottish Governments in addition to £80mln in joint funding for the Falkirk and Grangemouth Growth Deal.

This funding will support local energy projects to create opportunities for growth. There will also be immediate career support for workers to find new employment.

The Growth Deal already has a bioeconomy plant in the pipeline, which could use waste whisky and food in chemical production processes to reduce reliance on fossil fuels.

In addition, the 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.