Securing a future for Grangemouth

First Minister John Swinney has announced an additional £25 million to establish a fund to help secure the future of Grangemouth.

During a statement to Parliament he also called on the UK Government to address the immediacy and urgency of the situation facing Grangemouth by at least matching the Scottish Government’s investment.

The First Minister said:

“The aim of this fund is to expedite any of the potential solutions that will be set out in the Project Willow report, as well as other proposals that will give Grangemouth a secure and sustainable future.

“We have made the strategic decision to support this key activity through an additional draw down of ScotWind revenue totalling £25 million, to add to the £7.8 million in our budget for 2025-26. Altogether, the Scottish Government – with a finite budget – has committed or already invested £87 million in Grangemouth.

“We need the UK Government to do at least the same and deliver a fair amount to avoid significant economic disruption in central Scotland, and to protect and promote Scotland’s – and Grangemouth’s – future interests."

The First Minister confirmed to Parliament that an amendment will be lodged to the Scottish Government’s 2025-26 Budget Bill to allocate an additional £25 million to establish a Grangemouth Just Transition Fund.

Funds will be available immediately in the new financial year to support businesses and stakeholders to bring forward investible propositions over the next 12 months, and if necessary, beyond.

He added:

“We believe that refining at Grangemouth should continue, that this closure is premature and that it is detrimental to Scotland’s transition to net zero.

“We recognise the significance of the fact that we are now facing a programme of redundancies at Grangemouth and the impact this will have on the lives of those employed at the site. Every person, every family and every business impacted by the closing of the Grangemouth refinery, matters. Our immediate focus, rightly, is on providing those who are losing their jobs with targeted skills support.

“Everyone working at Grangemouth’s refinery is a valued employee with skills that are key to Scotland’s net zero future. We want them to stay in Scotland and continue to make their lives here. We will do all we can to ensure they have a future in the Scottish economy as we make the transition to net zero.

“That is why we are also working to secure Grangemouth’s role in that future and create an investible industrial strategy for the site.”

The First Minister also called on the UK Government to continue to work together with the Scottish Government to drive forward the next phase of Project Willow; to expedite a decision on Acorn and the Scottish Cluster of carbon capture projects; and to make urgent progress on allocating funding for the second round of hydrogen production projects. 

Background

Securing a future for Grangemouth - First Minister's statement - 18 February 2025

In September 2024 the Scottish and UK Governments published a joint plan to secure the industrial future of Grangemouth. 

In November the Scottish Government also sought views on a draft Just Transition Plan for the wider Grangemouth industrial cluster.

Project Willow is assessing credible options to begin building a new long-term industry at the refinery site. A range of proposals have been shortlisted by the UK and Scottish governments, as part of a joint-funded £1.5 million feasibility study.