At the Scottish Labour conference in Glasgow, Sir Keir Starmer made a significant announcement regarding a £200m investment in the future of the Grangemouth refinery. This move was praised by the prime minister as an investment in Scotland’s industrial future and is aimed at creating a new industrial purpose for the site. The refinery, which is owned by Petroineos, is facing closure in the near future, resulting in the loss of over 400 jobs. This decision prompted Scotland’s first minister, John Swinney, to call for more investment from the UK government to support the site.
Petroineos made the decision to close the refinery and transition it into an import terminal following substantial losses last year. Redundancy letters were sent out to staff with expectations that only 65 out of 500 jobs will be retained. The Grangemouth site currently employs around 2,000 people directly, with a portion working in various sectors such as the North Sea pipeline and petrochemicals. A report is expected to be published soon to explore the feasibility of transforming Grangemouth into a low-carbon energy hub, known as Project Willow.
During his address at the conference, Sir Keir emphasized the importance of oil and gas in Scotland’s future for ensuring energy security. However, he stressed the need for the UK to lead in clean energy and highlighted the potential for the Grangemouth site to play a significant role in renewable energy sectors such as bioengineering, biofuels, and Hydrogen energy. The plans outlined by Sir Keir include working with partners to develop proposals, attracting private investors, and creating new industries with the allocated £200m investment from the National Wealth Fund.
The announcement was met with support from various stakeholders, with promises of protection for workers facing redundancy. The Scottish Labour leader, Anas Sarwar, expressed optimism about the investment paving the way for a cleaner and more secure energy future. However, he stressed the need for further progress in supporting workers through a just transition. Additionally, Scotland’s first minister pledged £25m to establish a just transition fund for Grangemouth, urging the UK government to match this investment to avoid economic disruption and protect the interests of the region. Unite, the union representing workers at the plant, sees the funding as a positive step but emphasizes the importance of clear details and timelines to ensure the investment benefits workers and their security
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