Refinery latest: New report reveals £225 million plan to secure long term future of Grangemouth

The plan – which is backed by £200 million from the UK Government and £25 million from the Scottish Government – will support jobs, unlock investment and drive growth.

The £1.5 million feasibility study – known as Project Willow – follows the recent decision by Petroineos to decommission the oil refinery.

It has identified credible long-term industrial options for the Grangemouth site and explored how it can build on its skilled workforce, local expertise and long heritage as a fuel leader in Scotland to forge a new path in low carbon energy production.

The report provides nine proposals likely to attract private investment, including plastics recycling, hydrogen production and other projects that could create up to 800 jobs by 2040, grow the economy, and deliver on both Governments’ shared ambition to secure a long term future for Grangemouth.

To kickstart the process, Energy Minister Michael Shanks and Acting Cabinet Secretary for Net Zero and Energy Gillian Martin are co-chairing a meeting on Wednesday, March 19, of the Grangemouth Future Industry Board with local industry leaders, Falkirk Council, trade bodies and unions.

Scottish Enterprise and the UK Government’s Office for Investment will work with Petroineos to market the proposals set out in Project Willow and seek investor interest.

Falkirk Council leader Cecil Meiklejohn said: "A meeting of the Grangemouth Future Industry Board (GFIB) took place this morning with a further meeting planned to allow for a more in-depth discussion of Project Willow and its associated initiatives.

“Project Willow, a feasibility study published today, sets out nine credible projects aimed at fostering commercial opportunities, supporting job creation, and advancing a low-carbon economy and energy sustainability.

“The importance of considering not just the refinery closure but also the wider industrial and chemical cluster has been acknowledged, with the establishment of a task force to address these impacts.

“Effective regulation and policy will be critical in attracting investment, and both the UK and Scottish Governments have committed to collaborative efforts to ensure the success of these initiatives.

“Falkirk Council remains committed to working closely with all stakeholders to ensure a sustainable and prosperous future for Grangemouth and the wider region."

First Minister John Swinney added: “We will leave no stone unturned in order to secure the future of the Grangemouth refinery site, and the Scottish Government has already committed or invested a total of £87 million to help do so.

“Grangemouth is home to over a century of industrial expertise and employs thousands of highly skilled workers, placing the site at a massive competitive advantage and creating a unique opportunity for investors.

“Everyone working at Grangemouth’s refinery is a valued employee with skills that are key to Scotland’s economic and net zero future.

“This report sets out a wide range of viable alternatives for the refinery site, demonstrating that a long term, new industrial future at Grangemouth is achievable. We will continue to work closely with the UK Government to realise these opportunities and Scottish Enterprise stands ready to support inward investors looking to progress any of these technologies.”

Scottish Enterprise managing director for innovation and investment Jane Martin oversees the team who are focused on the transition of Grangemouth.

She said: “This publication marks a significant milestone in ensuring Grangemouth continues with its hugely important role in Scotland’s economy. Grangemouth already has a great workforce, transport links and ongoing development.

“And the Project Willow report will bolster the canon of work already being done by Scottish Enterprise and partners across the Grangemouth Cluster to build an exciting future for the site.”

A Petroineos spokesperson said: “The publication of the first Project Willow report is a milestone event for Grangemouth that could mark the beginning of a transformation for the whole cluster and, in time, create many more jobs and growth opportunities across a variety of related industries in Scotland. “We look forward to continuing to support both UK and Scottish Governments as they implement the recommended policy, regulatory and fiscal changes required to unlock the opportunities identified in our report.”

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