‘Grown-up debate’ needed about future of Grangemouth, says Petroineos boss

A “grown-up debate” is required about the future of the Grangemouth refinery, a senior official from its owners has said.

Petroineos announced in September the refinery will close in the second quarter of next year, putting 400 jobs at risk.

Both the Scottish and UK governments as well as trade unions have hit out at the announcement, with Petroineos repeatedly being urged to pause the decision to allow for a transition.

It is not too late for us all to co-develop a bright future for Grangemouth, producing low-carbon fuel and eventually creating hundreds of jobs here again

The firm claims it is making heavy losses at the site, with a £150 million loss expected this year.

Writing in the Daily Record, regional head of legal and external affairs at Petroineos Iain Hardie said it was “not too late” to develop a future for the site, but he lamented the tone of the debate since the announcement.

“The men and women who work at Grangemouth deserve a more intelligent debate about their future than the one being played out by politicians and trade unions, who are naturally defensive at having missed the opportunities we gave them several years ago to talk to us about an orderly and fair transition away from fossil fuels to cleaner energy,” he wrote.

“Despite meaningless statements about pausing the closure or confusing suggestions that the refinery can become a biofuels plant overnight, politicians and the trade unions have left it too late.

“But it is not too late for us all to co-develop a bright future for Grangemouth, producing low-carbon fuel and eventually creating hundreds of jobs here again.”

Mr Hardie added: “If we want to seize new opportunities, rebuild Grangemouth as a modern, thriving manufacturing site and treat the workforce with respect and fairness, we urgently need a more grown-up debate that focuses more on the future than on the past.

“We will all be failing if we don’t make that happen. We have long been ready to play our part.”

A letter from Sharon Graham, the general secretary of the trade union Unite, to UK Energy Secretary Ed Miliband last week said the refinery could be converted to produce sustainable aviation fuel (SAF) “relatively easily”, something Petroineos rejects.

Later in the week, the union’s Scotland regional secretary told MSPs the company’s books gave a “distorted picture” of the financial situation at the plant, which the firm also rejected.

Acting energy secretary Gillian Martin said: “We have made clear our extreme disappointment that Petroineos has made the commercial decision to cease refining at the site in the second quarter of 2025. Despite sustained and concerted efforts by both governments, Petroineos have opted not to continue operations at the site for longer to allow a longer transition timeline for the workers.

“Our focus now is on delivering immediate support for affected workers to secure new jobs and give access to any necessary training, and to secure a sustainable, just transition for the wider Grangemouth industrial cluster.

“With the UK Government we are providing funding to support Petroineos’ exploration of viable options for the future of the site via the Project Willow cross-site study and look forward to exploring routes to supporting the future phases of low carbon projects at Grangemouth via the UK Government’s national wealth fund.

“Project Willow is building on earlier studies funded by the Scottish Government with the refinery operators and is being accompanied by accelerated and focused work on inward investment into the area by Scottish Enterprise.”