Grangemouth Oil Refinery Closure: Job Losses

Lord Woodley Excerpts

Thursday 3rd July 2025 Lords Chamber

Asked by

[Lord Woodley]

To ask His Majesty’s Government what steps they are taking to mitigate job losses following the Grangemouth oil refinery closure.

[Lord in Waiting/Government Whip (Lord Wilson of Sedgefield) (Lab)]

My Lords, the decision by Petroineos to cease refining at Grangemouth was deeply disappointing. Before July 2024, there was no plan for Grangemouth. Within weeks, we worked with the Scottish Government to deliver a £100 million package to support the local community. This includes a training guarantee for all Grangemouth refinery staff affected to help them into new, good jobs with local employers. Project Willow identifies nine low-carbon business models that could create 800 jobs by 2040, backed by £200 million from the National Wealth Fund.

[Lord Woodley (Lab)]

I thank the Minister for his Answer. I speak as the former leader of Unite the Union. My union, and indeed the people at the sharp end in Grangemouth, believe that converting the existing refinery to produce sustainable aviation fuel, which is much needed by the industry now and in the future, is by far the best option for creating jobs on that site. That is what Keir Starmer promised—green jobs, new jobs. Does the Minister agree that the plan should therefore be fast-tracked and implemented now? We could be producing aviation fuel, as opposed to importing it and storing it as in the Chinese/Ineos joint venture proposals. It would be best for jobs, best for Scotland and best for Britain.

[Lord Wilson of Sedgefield (Lab)]

I thank the noble Lord for his question. We welcome Unite’s continued engagement in the long-term clean energy future of the site, and long may that involvement continue. The Prime Minister is committed to creating many more green jobs. The Government share Unite’s ambition to secure a viable, long-term future for the site, which is why the National Wealth Fund stands ready to invest £200 million once an investable proposition has been identified, which could include sustainable aviation fuel.