Initial interest in Grangemouth rescue plan 'above expectations'

Initial interest in the Grangemouth rescue plan that needs £3.5bn worth of private investment has been “above expectations”, according to deputy first minister Kate Forbes.

In a ministerial statement on Thursday, Forbes confirmed that initial interest in the nine “credible” options for the site’s future “has already been very strong.”

“Both Scottish Enterprise and site owners Petroineos have confirmed that they’ve received numerous expressions of interest from numerous parties,” Forbes said.

She couldn’t give specific figures, but she said that the report from Petroineos indicates that the response “is above expectations”.

However, Forbes said that Petroineos has not made any firm commitments to invest in any of the projects identified for the future of Grangemouth.

“The Scottish Government has worked with the business previously on progressing bio-refinery proposals, but they have not taken the decision to continue with that project. In lieu of commitment from Petroineos, we are engaging with all parties that are interested in progressing with low-carbon projects at Grangemouth,” Forbes said.

“Whatever role they play in the future, Petroineos have confirmed they will act in good faith when engaging with businesses interested in deploying new projects on the existing site.”

Forbes’ ministerial statement on Thursday provided an update about Grangemouth’s Project Willow, which identified nine “credible” projects last month for the future of the oil refinery site when it closes.

Last month the report revealed that no matter which projects are taken forward, the rescue operation will require substantial capital investment from the private sector – somewhere in the region of £3.5bn.

The projects would also only create about 1,100 jobs—around half the number of posts at risk from the refinery’s closure.

In addition, the most job-intensive projects would not come online until the mid-2030s.

In the meantime, Tory MSP Douglas Lumsden (North East Scotland) said Petroineos has already made 405 workers redundant with a further 105 to go in the next 18 months.

“Project Willow will not save those jobs,” he said.

“It may create 800 jobs over 15 year period, but only if £4.25bn is invested. Those 405 workers cannot wait 15 years.”

Labour MSP Richard Leonard (Central Scotland) quoted Unite the Union who were in Westminster yesterday.

“They warned that if Grangemouth is not repurposed and closes this year, the infrastructure will run down or disappear altogether,” Leonard said.

“The workers will go, and Project Willow will be nothing more than a paper exercise.”

Forbes shared concerns about securing a future for the site as soon as possible and assured MSPs that Project Willow is being progressed.

She said the cabinet secretary for energy and net zero has instructed Scottish Enterprise to establish an investment task force to find investors for the nine Project Willow proposals. It will report jointly to the Scottish and UK Governments on a six-weekly basis.