- Closure in 2025 will cut 400 jobs as the site becomes a fuels import terminal.
- UK and Scottish governments pledge £100M for worker support and green projects.
- Petroineos cites $775M losses and declining fossil fuel demand for closure.
- Grangemouth processes North Sea Forties and U.S. WTI Midland crude.
Closure and Transition
Scotland's Grangemouth oil refinery will close in 2025, transitioning into a fuels import terminal. This decision by the operator will result in the loss of 400 jobs, marking a significant shift in the region's industrial landscape.
Political and Community Response
The closure has sparked strong reactions, with discussions in the Scottish Parliament focusing on the impact on workers and communities. Members of Parliament have called for substantial investment in workforce reskilling and local economic development, emphasizing the need to align the site's future with Scotland's climate targets. The UK and Scottish governments have pledged £100 million to support affected workers and green energy projects.
Economic Challenges
Petroineos cited unsustainable losses of over $775 million since 2011 and declining demand for fossil fuels as reasons for the closure. The refinery processes North Sea Forties crude and U.S. WTI Midland, both key contributors to the Brent oil benchmark. Despite its industrial significance, Grangemouth has struggled to compete with more modern facilities globally.
Future Opportunities
The Scottish Parliament has expressed a strong consensus on leveraging Grangemouth's assets to pioneer green energy solutions, such as sustainable aviation fuel, clean eFuels, and low-carbon hydrogen. The government is committed to ensuring no community is left behind during this transition. Trade unions, while critical of the closure, remain in dialogue about future opportunities.
Continued Operations
Other operations at the Grangemouth site, including the Olefins and Polymers petrochemical plant and the Forties Pipeline System, will continue unaffected by the refinery's closure.
