Your assist helps us to inform the story
Discover out extraShut
As your White Home correspondent, I ask the powerful questions and search the solutions that matter.
Your assist permits me to be within the room, urgent for transparency and accountability. With out your contributions, we would not have the assets to problem these in energy.
Your donation makes it attainable for us to maintain doing this necessary work, conserving you knowledgeable each step of the way in which to the November election
Andrew Feinberg
White Home Correspondent
The Scottish and UK governments have pledged a £100 million assist bundle for Grangemouth after bosses at Petroineos introduced Scotland’s solely oil refinery is to shut, with the lack of 400 jobs.
The corporate confirmed to workers on the web site on Thursday that the refinery will shut within the second quarter of 2025 – with it then switching to grow to be an import solely terminal for fuels.
That might see the variety of workers employed at Grangemouth drop from the present complete of 475 to 75 over the subsequent two years.
UK vitality secretary Ed Miliband mentioned it’s “deeply disappointing” that Petroineos has confirmed its earlier choice – introduced in October 2023 – to shut the refinery.
Gillian Martin, performing web zero and vitality secretary for the Scottish authorities, mentioned it will likely be a “difficult time” for the workforce, and he or she vowed ministers will “assist each employee affected by this choice”.
Petroineos had mentioned final 12 months that the ageing web site “faces important challenges resulting from international market pressures and the vitality transition” – with Grangemouth accruing common day by day losses of 500,000 US {dollars} (£380,000) a day during the last week.
Within the wake of the corporate confirming its closure plans, the 2 governments introduced £20 million of joint funding – with this approaching high of £80 million funding as a part of the Falkirk and Grangemouth Development Deal.
The cash will go to assist assist the area people and spend money on native vitality tasks to create new alternatives for the realm.
Ministers at Holyrood and Westminster have pledged speedy profession assist for employees, whereas Challenge Willow, which was arrange and funded by the Scottish and UK governments to have a look at future prospects for the location, is claimed to have recognized three credible choices.
This might imply Grangemouth transitions to concentrate on both low carbon hydrogen, clear efuels or sustainable aviation fuels.
In an announcement on Thursday, the corporate confirmed: “Petroineos has as we speak introduced its intention to stop refinery operations at Grangemouth and transition to a completed fuels import terminal and distribution hub in the course of the second quarter of 2025, topic to session with staff.”
Mr Miliband mentioned: “It’s deeply disappointing that Petroineos have confirmed their earlier choice to shut Grangemouth oil refinery.
“We’ll stand with the workforce in these tough occasions, that’s the reason we’re saying a bundle of funding to assist the workforce discover good, various jobs, make investments in the neighborhood and serve a viable industrial future for the Grangemouth web site, with potential for future assist from the Nationwide Wealth Fund.
“Not like previously, the federal government is working in lockstep with the Scottish authorities throughout each entrance.
“Staff and their households ought to be in little doubt it is a authorities that stands with employees, commerce unions and companies to battle for jobs and funding in Scotland.”
Ms Martin mentioned the Scottish authorities is “working very intently with the UK authorities”, including they’ve collectively “communicated our disappointment to Petroineos as we speak”.
Whereas she mentioned the Scottish authorities would have most well-liked for “refining to proceed so long as attainable”, Mr Martin added a “important bundle of assist” has been put in place which “combines speedy assist for affected employees and a long-term contribution to make sure that Grangemouth continues to thrive sooner or later”.
She added: “We’re clear that there ought to be a simply transition for the refinery web site and we stay dedicated to bringing ahead low-carbon alternatives that can maintain expert jobs throughout the broader space for a few years to return.”
Scottish secretary Ian Murray mentioned: “I perceive it is a worrying time for the employees on the refinery and the UK authorities is working intently with the Scottish authorities and Petroineos to make sure they’re being supported.
“Each governments have invested in Challenge Willow to look at how Grangemouth stays an vitality hub in Scotland. The improved £100 million Falkirk and Grangemouth Development Deal introduced as we speak will assist make sure the long-term way forward for the location – a key a part of our journey to scrub vitality by 2030.
“We stay dedicated to working collectively taking a look at how we might help the realm construct on its expert workforce and native experience to spice up financial progress.”
Unite basic secretary Sharon Graham mentioned: “That is an act of business vandalism, pure and easy.
“This devoted workforce has been let down by Petroineos and by the politicians in Westminster and Holyrood who’ve failed to ensure manufacturing till various jobs are in place.
“That is now the final likelihood for this Labour authorities to indicate whether or not it’s actually on the aspect of employees and communities.
“The street to web zero can’t be paid for with employees’ jobs.
“The federal government should put its cash the place its mouth is to make sure the roles are safeguarded. That is the one refinery left in Scotland and it should stay.”
PA
