First Minister John Swinney has announced an additional £25 million to establish a Grangemouth Just Transition Fund, as the Scottish government intensifies efforts to secure the site’s future amid its impending closure.
The funding, drawn from ScotWind revenue, will be immediately available in the new financial year to support businesses and stakeholders in developing investible proposals.
This brings the Scottish Government’s total investment in Grangemouth to £87 million.
“The aim of this fund is to expedite any of the potential solutions that will be set out in the Project Willow report, as well as other proposals that will give Grangemouth a secure and sustainable future,” Swinney stated.
The announcement comes as Petroineos proceeds with its plans to cease refining operations, with only 65 workers to be retained out of approximately 500 positions.
A careers fair scheduled for March 6 has already attracted 19 companies offering employment opportunities.
Swinney expressed his government’s position on the closure: “We believe that refining at Grangemouth should continue, that this closure is premature and that it is detrimental to Scotland’s transition to net zero.”
The First Minister has called on the UK Government to match this funding commitment, arguing that current growth deal funding spread over ten years doesn’t address the immediate challenges.
A £1.5 million feasibility study, known as Project Willow, examining potential alternative industries for the site, including plastics recycling, hydrogen production, and sustainable aviation fuel, is expected to be published by the end of the month.
