The UK government has agreed a £150 million joint investment package with INEOS to secure the future of the Grangemouth ethylene cracker, Scotland’s last remaining facility of its kind and the only cracker left in the UK following the closure of ExxonMobil’s plant at Fife. Ministers said the move is intended to protect chemical production and skilled jobs at the strategically important site on the Firth of Forth.
Under the deal, the government will provide more than £120 million, made up of a £75 million loan guarantee and a £50 million grant to support INEOS’ investment at Grangemouth. INEOS, which has already spent over £100 million in the past year to keep the site running, will fund the balance of the £150 million package.
The funding sits within the UK’s wider industrial strategy, including the British Industrial Competitiveness Scheme, which aims to cut energy costs for energy‑intensive sectors such as chemicals by up to 25%. The support is expected to improve energy efficiency, reduce carbon emissions and boost productivity at Grangemouth, enhancing the plant’s long-term competitiveness.
With nameplate capacity of around 830,000 tonnes of ethylene per year, Grangemouth is now the UK’s last remaining cracker after Fife’s ethane-fed unit shut, underlining its strategic role in domestic feedstock supply. The government noted that Europe’s chemicals sector has been under severe pressure from high energy costs, with about 40% of regional ethylene capacity recently closed or at risk, making retention of UK capability a political and industrial priority.
Michelle Ferguson, Director, CBI Scotland, said: “We welcome today’s joint UK Government-INEOS funding announcement, which will support hundreds of jobs and the supply chain following a period of uncertainty for the local community and workforce.
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“The Grangemouth industrial complex has contributed significantly to Scotland’s industrial and manufacturing sector and economic strengths for decades. The UK and Scottish governments must continue to work in partnership with business to ensure the Scottish economy retains skilled and experienced workers in key industries such as manufacturing to boost long-term growth.”
INEOS chairman and CEO Sir Jim Ratcliffe said: “The support of the UK Government is welcome, however, we need to continue to work together to deliver competitive and efficient low-carbon manufacturing for the UK, long term. The answer is not decarbonisation by deindustrialisation.”
