Scottish and UK governments jointly fund £1.6m review of Grangemouth's future

THE UK and Scottish Governments have agreed to jointly fund a report into the long-term future of the Grangemouth oil refinery.

A total of £1.6 million is being spent on the initiative dubbed Project Willow, which will examine how the site can be transformed into a clean energy hub.

However, Scottish Secretary Ian Murray has said it is too soon to give assurances about jobs at risk due to plans to close the refinery.

Owner Petroineos said in November it will cease oil refinery operations by 2025 and turn the site into a fuels import terminal.

The separate petrochemicals plant will continue as normal, but the refinery decision will result in 400 job losses.

Murray told reporters: "What we're announcing today is a jointly funded report called Project Willow for the long-term future of the Grangemouth site.

NEW: The UK and Scot Governments have agreed to jointly fund a report into the long term future of Grangemouth £1.6m is being spent on Project Willow But Scottish Secretary @IanMurrayMP says it’s too soon to give assurances about jobs at risk due to plans to close the refinery pic.twitter.com/fQJ9VBRjD7

— Alan Smith (@Political_AlanS) July 12, 2024

"It's a big cast iron commitment that both governments are working together in conjunction with the trade unions and the company [Petroineos] to find a long-term future for the Grangemouth site.

"We're working hand in glove with Petroineos as well because there is an immediate problem with the long-term future of the refinery but there's also a wider issue in terms of long-term for the site itself. 

"Project Willow is looking at the long-term future of the site itself and what it can turn into in terms of meeting our net zero ambitions."

Murray (below) added that for the Labour UK Government, the future of Grangemouth is a "number one agenda item". 

He went on: "We're fully committed as a UK Government to find both short, medium and longer term solutions to Grangemouth and I hope that's come through clear to the company and we've asked them to give us a bit more time to see what can be done with some of the immediate problems."

Murray added: "The future of Grangemouth was the first official briefing I took in office, and the Prime Minister made clear it was a priority for this government when visiting Scotland on his first official engagement last weekend.

"That is why I am delighted we are already making significant progress on discussions around potential funding to look at a sustainable long term solution to the Grangemouth site."

Grangemouth is a major supplier of petrol and diesel across the central belt and the primary supplier of aviation fuel for Scotland's main airports.

If the refinery closed, Scotland would become the only major oil-producing country not to have its own oil-refining capacity.