A £1.5 million feasibility study (Project Willow) — undertaken by the consulting company EY following the recent decision by
Petroineos to decommission its Grangemouth oil refinery — has established a nine-point plan to secure a long-term industrial future for 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 study 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’ and attract private investment in the likes of plastics recycling and 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.
Following the Prime Minister’s announcement in February of £200 million to ‘help unlock Grangemouth’s full potential’, First Minister John Swinney announced £25 million to establish a Grangemouth Just Transition Fund, which will ‘support businesses and stakeholders to bring forward investible propositions for the site’ over the next 12 months.
Energy Minister Michael Shanks said: “We committed to leaving no stone unturned in supporting an industrial future for Grangemouth, delivering jobs and economic growth. This report and the £200 million investment by the UK Government demonstrates that commitment. We will build on Grangemouth’s expertise and industrial heritage to attract investors, secure a long-term clean energy future, and deliver on our Plan for Change.”
Ian Murray, Scottish Secretary, said: “The publication of the Project Willow report and the options it sets out mark a significant milestone in our commitment to deliver a long-term, sustainable future for the Grangemouth site, one that benefits the local community and the Scottish economy. Working alongside the Scottish Government and local partners, we remain committed to supporting the skilled workforce at Grangemouth and are already working to attract investors for the projects outlined in this report.”
First Minister John Swinney said: “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 — and in the wider industrial cluster — is a valued employee with skills that are key to Scotland’s economic and ‘net zero’ future.”