- Petroineos plans to close the Grangemouth refinery by Q2 2025, risking over 400 jobs.
- Converting the refinery to SAF production is 30-70% cheaper than building new.
- Unite's plan includes a 1-3 year transition to HEFA-based SAF without job losses.
- Petroineos is partly owned by PetroChina, which may import SAFs to the UK.
Closure Threat
Petroineos announced plans to close the Grangemouth refinery, Scotland's only refinery, by the second quarter of 2025, which would result in the loss of over 400 direct jobs and thousands more in the supply chain. Unite, the union representing the workforce, has urged the UK government to intervene and prevent the closure.
Transition Proposal
Unite has developed a plan to convert the refinery into a Sustainable Aviation Fuel (SAF) facility, aligning with government policies and potentially saving jobs. The union's research indicates that converting an existing refinery is 30-70% cheaper than constructing a new one. The plan suggests an initial transition to Hydro-processed Esters and Fatty Acids (HEFA) based SAF within 1-3 years, followed by a long-term shift to advanced SAF and other fuel technologies.
Government Involvement
Unite has called for an immediate pause on closure threats and an independent review of the refinery's state, proposing the establishment of a Grangemouth Transition Plan body. This body would involve the UK and Scottish Governments as "Investors of first resort," with the potential for other investors if Ineos, the parent company, does not commit.
Concerns and Conflicts
Unite's report raises concerns about Petroineos' transparency and the rationale behind the closure decision. It highlights a conflict of interest, as Petroineos is partly owned by PetroChina, which is increasing its SAF production and may seek to import these fuels to the UK. The union argues that the government's inaction could undermine worker confidence during the transition to a green economy.
