UK and Scottish governments to fund £1.6m report into Grangemouth’s future

The UK and Scottish Governments will fund a £1.6m report into the future of Scotland’s last-remaining oil refinery.

Scottish secretary Ian Murray told STV News that the report into Grangemouth will begin immediately but said “we are not promising anything at the moment”.

Petroineos announced last year that it would wind down operations at the plant as soon as 2025, putting 400 jobs at risk.

Murray said Project Willow would be jointly funded by Holyrood and Westminster but would include “expertise” and staff provided by the owners of Grangemouth.

Energy secretary Ed Miliband promised to leave “no stone unturned” on finding a future for the site.

“Well it’s good news,” Murray told STV News. “We’ve been working very hard since forming the government last Friday to make this our top priority and we’ve got an agreement with the Scottish Government to have the Project Willow long-term report funded by both governments, coming together with the company.

“Lots of happy engagement with Grangemouth to give it a brighter future.

“The site is critical to our net zero ambitions and our clean energy ambitions but it’s also critical to the local economy.

“What we want is to make sure it has a bright future and that the Project Willow report, which is funded jointly by both governments, will examine its bright future in terms of what the site can give us towards our clean energy future and the local economy.”

The Scottish secretary said energy secretary Ed Miliband will chair a development committee on the future of the site.

He said the refinery was a “top priority” for the Scotland Office and Prime Minister Keir Starmer.

“I’ve made it a priority. It’s the very first thing I got briefed on when I entered Dover House and Ed Miliband has done the same as the secretary of state for energy, making it one of his top priorities, and indeed it was on the Prime Minister’s agenda when he met the First Minister on Sunday.”

Murray said he was hopeful he would have “more positive news” in the coming week as talks with Petroineos continue.

He said both governments in London and Edinburgh were committed to ensuring a future for Grangemouth.

Miliband added: “The UK government will leave no stone unturned in seeking a future for the Grangemouth site and its workers.

“We are committed to boosting growth through an industrial strategy, and to engaging with the workers and communities of Grangemouth and the Scottish government.

“That’s why we will be immediately funding work to explore options for a sustainable future for the site in partnership with the Scottish Government. I will also be co-chairing the Grangemouth Future Industry Board Leadership Forum to take this vital work forward.”

Acting secretary for net zero and energy Gillian Martin said: “The Scottish Government wishes refining at Grangemouth to continue for as long as practicable and recognises that the site, and its workforce, are crucial to Scotland’s economy and our transition to net zero.

“We are committed to working collaboratively with Petroineos, UK Government ministers and Unite the Union to explore the options available to secure a long term, sustainable future for the site and accelerate new employment opportunities.

“I am pleased to have had early positive discussions with UK Secretary of State Ed Miliband about this over the past week and I welcome his constructive approach to seeking a long term, sustainable future for Grangemouth and his willingness to work with me to secure that.

“We are working to finalise our draft Grangemouth Just Transition Plan, which will be published shortly and will include a first-of-its-kind vision for the site, outlining the long term net zero operations we would hope to see take place by 2045.”

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