UK

Just transition plan for Grangemouth site delayed until spring

The Scottish Government confirmed the delay on Thursday.

The refinery on the site is due to close next year
The refinery on the site is due to close next year (Andrew Milligan/PA)

The Scottish Government has delayed a plan for the Grangemouth refinery until next spring – just months before the site is due to be closed.

Bosses at the site have announced the refinery will close in the second quarter of next year, citing financial viability issues, with plans to convert it to an import terminal at the cost of 400 jobs.

The decision drew both condemnation and worry from workers, trade unions and both the UK and Scottish governments – who urged owners Petroineos to reconsider.

The Scottish Government had been in the process of developing a just transition plan for Grangemouth before the announcement.

But on Thursday, climate minister Alasdair Allan announced the plan would be delayed until next year.

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Four hundred jobs will be lost in the refinery closure
Four hundred jobs will be lost in the refinery closure (Andrew Milligan/PA)

“The Scottish Government has long understood the criticality of that wider Grangemouth cluster, and that is why we made a commitment to develop a just transition plan, which set a clear direction for the future of the whole site and recognised the need for that change in the future,” the minister said.

“Today, I’d like to update Parliament that we have taken the decision to introduce a short delay to the development of the Grangemouth plan.”

Mr Allan – speaking during a debate in Holyrood – told MSPs said the plan is “distinct from and in addition” to work being done by the Scottish and UK governments on the site, including a joint £20 million investment in the area.

“In terms of the Grangemouth plan, that will allow us time to consider the recent refinery announcement and incorporate critical evidence from the Project Willow study, assuring alignment between these important pieces of work,” he said.

“We will launch our consultation on the draft plan shortly, with a view to delivering the final plan in the spring of next year.”

Mr Allan went on to reiterate the Government’s “unwavering commitment” to a just transition at Grangemouth, despite the “disappointing” announcement from Petroineos.