UK and Scotland's Joint Investment Plan for Grangemouth's Industrial Future

The UK and Scottish governments have announced a joint investment plan to secure the future of Scotland's Grangemouth oil refinery site, as its operator, Petroineos, plans to cease operations in 2025 due to global competition. The plan includes an additional £20 million ($26 million) to a previously announced £80 million support package, focusing on career support, local energy projects, and sustainable industrial development.

The UK and Scottish governments revealed on Thursday a collaborative investment plan aimed at securing the industrial future of Scotland's only oil refinery site, Grangemouth. The move follows Petroineos's announcement to halt operations in 2025.

Petroineos cited global market pressures and competition from more modern sites in the Middle East, Asia, and Africa as reasons for discontinuing its refining activities at Grangemouth during next year's second quarter. In response, both governments have crafted a comprehensive investment plan to ensure the site's long-term viability and safeguard jobs.

This strategy involves an additional £20 million ($26 million) on top of an earlier £80 million support package. The funds aim to provide career transition support for impacted workers, foster local energy projects, and establish a new sustainable industrial base, such as carbon hydrogen or sustainable aviation fuels. "It is deeply disappointing that Petroineos has confirmed their decision to close Grangemouth oil refinery," stated UK's energy secretary Ed Miliband. "We will stand with the workforce in these difficult times."($1 = 0.7659 pounds)

(With inputs from agencies.)