Minister ‘hopeful’ for ‘positive’ announcement on Grangemouth soon

The UK’s energy minister has said he is “hopeful” that an announcement on investment in Grangemouth will come soon.

Michael Shanks said more than 80 potential investors had come forward since the UK Government pledged £200m for the site.

The UK Government is looking for another £600m from private investment in the area, following the closure of Scotland’s last oil refinery there.

Mr Shanks said the investment, announced by the Prime Minister at the Scottish Labour conference earlier this year, will help provide a “long-term, sustainable future” for the site.

More than 400 jobs were lost at the oil refinery as owners Petroineos transitioned it to a fuel import terminal.

The company said the facility was losing large amounts of money every day.

More than 400 jobs have been lost at the Grangemouth site. PA Media

Speaking on BBC Scotland’s The Sunday Show, the energy minister said his Government was engaging with businesses on new projects for the area.

“We’ve had some really positive meetings around potential investors,” he said.

“In fact, there’s more than 80 potential investors come forward.

“Scottish Enterprise is driving forward due diligence on that.

“There’s a number of really credible projects that we’re developing at the moment.

“We hope we’ll have some really positive announcements to say soon.”

Mr Shanks said the “unprecedented” £200 million investment from the National Wealth Fund would help “create the jobs of the future” while providing the security of long-term investment.

He added: “I’m hopeful we will have announcements soon.

“I’m not involved in the due diligence, as you wouldn’t expect, but there are some really exciting, viable projects coming forward that will deliver jobs in Grangemouth long into the future.”

Following the announcement by Petroineos to close the plant, the Scottish and UK governments funded Project Willow, a report which laid out the potential future of the site in areas such as sustainable aviation fuel.

Earlier this week, Jan Robertson, Grangemouth director for Scottish Enterprise, said he had received a “mixture of inquiries” from businesses, including those interested in the site as well as some which “have a good opportunity to become projects in the relatively near-term”.

Scotland’s Net Zero Secretary Gillian Martin said the ‘door’s not closed’ on Grangemouth. PA Media

“What I mean by that is the next three to four years,” she told Holyrood’s Economy and Fair Work Committee.

“Our approach very much at the moment is working with those and working as closely and quickly as we can to make the progress that we want to see in Grangemouth.”

Scotland’s Net Zero Secretary Gillian Martin said at the committee that the “door’s not closed” to companies and inquiries could still be made about working at Grangemouth, adding that Petroineos had also received approaches.

Ms Martin said she was hopeful for the future of Grangemouth.

“We could look back five years and start pointing fingers, but the most important thing is that in the last year – actually the last six months – Project Willow and the task force have moved things along in a way that’s been swift, agile, focused,” she said.

“I am feeling so much more confident than I did this time last year in the prospects for that site.”

Ms Martin added that she hoped, with approval from the cabinet, a just transition plan for Grangemouth would be published next week.