Released March 05, 2025 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K. government has pledged to invest £200 million (US$252 million) into transforming the site of the Grangemouth oil refinery in Scotland into a clean energy hub.
The investment comes hot on the heels of Scotland's First Minister John Swinney's committing £25 million (US$31.5 million) from the proceeds of the Scottish offshore wind leasing round - ScotWind - to help kickstart a transition fund for Scotland's only oil refinery, which is due to shut this summer with the loss of more than 400 jobs. Owner/operator Petroineos (London) - a joint venture between Chinese state oil firm PetroChina (Beijing, China) and U.K. chemicals major, INEOS Limited (London, England) - is planning to shut down the 150,000-barrel-per-day (BBL/d) refinery in order to convert it into a fuel-import terminal. It cited high costs and declining fuel demand in Europe for its decision. Grangemouth is one of only six refineries in the U.K.
Announcing the investment, U.K. Prime Minister Keir Starmer said: "We will grasp the opportunities at Grangemouth, work alongside partners to develop viable proposals and team up with business to get new industries off the ground. And to attract private investment into the partnership we need we will allocate £200 million from the National Wealth Fund for investment in Grangemouth - an investment in Scotland's industrial future."
Scottish Secretary Ian Murray added: "The U.K. Government has been working at speed to ensure a long-term future for Grangemouth and the National Wealth Fund allocation announced today demonstrates our commitment to this. We remain committed to working closely with the Scottish Government and other partners to support the refinery workers and ensure the long-term future of this site. Project Willow, the co-funded initiative which is examining the green-energy future of the industrial site, is expected to produce its report in the spring."
The Grangemouth site is home to a number of operations, including the refinery. Around 450 are employed at the Forties pipeline from the North Sea and roughly 1,000 in the INEOS petrochemicals business. Industrial Info is tracking 23 projects at the Grangemouth complex worth more than US$1 billion in investment across its refining, chemicals and pipelines businesses. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. Petroineos has a number of emissions-reduction projects underway at the site, including a planned hydrogen plant, as part of its Net Zero Grangemouth initiative.
The money to help kickstart a clean energy investment rush at Grangemouth will come from the National Wealth Fund (NWF), which is the government's new banking vehicle for co-funding strategic projects with the private sector. Of its initial funding of £27.8 (US$35 billion), £5.8 billion (US$7.3 billion) has been set aside for green projects including "carbon capture, green hydrogen, ports, gigafactories and green steel." Most recently, the NWF invested in the U.K.'s first tin mine project in three decades. For additional information, see February 19, 2025, article--Government Backs U.K.'s First New Tin Mine.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The investment comes hot on the heels of Scotland's First Minister John Swinney's committing £25 million (US$31.5 million) from the proceeds of the Scottish offshore wind leasing round - ScotWind - to help kickstart a transition fund for Scotland's only oil refinery, which is due to shut this summer with the loss of more than 400 jobs. Owner/operator Petroineos (London) - a joint venture between Chinese state oil firm PetroChina (Beijing, China) and U.K. chemicals major, INEOS Limited (London, England) - is planning to shut down the 150,000-barrel-per-day (BBL/d) refinery in order to convert it into a fuel-import terminal. It cited high costs and declining fuel demand in Europe for its decision. Grangemouth is one of only six refineries in the U.K.
Announcing the investment, U.K. Prime Minister Keir Starmer said: "We will grasp the opportunities at Grangemouth, work alongside partners to develop viable proposals and team up with business to get new industries off the ground. And to attract private investment into the partnership we need we will allocate £200 million from the National Wealth Fund for investment in Grangemouth - an investment in Scotland's industrial future."
Scottish Secretary Ian Murray added: "The U.K. Government has been working at speed to ensure a long-term future for Grangemouth and the National Wealth Fund allocation announced today demonstrates our commitment to this. We remain committed to working closely with the Scottish Government and other partners to support the refinery workers and ensure the long-term future of this site. Project Willow, the co-funded initiative which is examining the green-energy future of the industrial site, is expected to produce its report in the spring."
The Grangemouth site is home to a number of operations, including the refinery. Around 450 are employed at the Forties pipeline from the North Sea and roughly 1,000 in the INEOS petrochemicals business. Industrial Info is tracking 23 projects at the Grangemouth complex worth more than US$1 billion in investment across its refining, chemicals and pipelines businesses. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. Petroineos has a number of emissions-reduction projects underway at the site, including a planned hydrogen plant, as part of its Net Zero Grangemouth initiative.
The money to help kickstart a clean energy investment rush at Grangemouth will come from the National Wealth Fund (NWF), which is the government's new banking vehicle for co-funding strategic projects with the private sector. Of its initial funding of £27.8 (US$35 billion), £5.8 billion (US$7.3 billion) has been set aside for green projects including "carbon capture, green hydrogen, ports, gigafactories and green steel." Most recently, the NWF invested in the U.K.'s first tin mine project in three decades. For additional information, see February 19, 2025, article--Government Backs U.K.'s First New Tin Mine.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
