Scotland’s only oil refinery, which is set to close next year, could be transformed into a “decarbonisation hub,” according to Scottish Labour.
Petroineos is owned in partnership by British company Ineos and the Chinese state-owned PetroChina. Last November Petroineos said that it could cease refinery operations and turn into a fuels import terminal as soon as 2025.
At the time, the firm said the site “faces significant challenges due to global market pressures and the energy transition.” Around 500 workers are employed there.
On Tuesday Scottish Labour’s Deputy Leader Dame Jackie Baillie said that the site should be a “home for the energy industries of the future.”
It follows Prime Minister Sir Keir Starmer’s pledge to safeguard jobs there on Monday.
The Labour Party, which last week won the UK election along with its Scottish counterpart, faces the challenge of adhering to UK climate laws while maintaining jobs and energy security.
Carbon Capture
Speaking to the BBC’s “Good Morning Scotland” radio programme Dame Jackie said on Monday: “There was a discussion yesterday between the prime minister and the first minister about Grangemouth.“We would use the convening power of government to get people around the table in the short-term, but it is about building a long-term future for the site.
Huge Problem
Speaking to the BBC on Tuesday, Ian Murray, who was appointed Scottish secretary after Labour’s win last week, said the refinery was a “hugely important priority.”“The prime minister and the first minister discussed this on Sunday, it was the very first briefing that I got when I was appointed as secretary of state for Scotland on Saturday morning,” he added.
“The bottom line here is we’ve got both governments fully focused on trying to find a way through in terms of Grangemouth.
“There will be, hopefully, fairly positive announcements soon on a way forward.”
Asked if public cash would be invested, Mr. Murray said: “The bottom line at the moment is that we don’t know the answers to those questions—nobody does.
“That’s why the Scottish Government, UK government, the trade unions, and the company are working very, very hard together to find a way through this huge problem that we have at the Grangemouth refinery.”
A spokesman for Petroineos said, “Keir Starmer became PM on Friday so we haven’t met his team yet but we’re encouraged by his strong expression of support for the workforce here and look forward to discussing in more detail the future transformation of the refinery and, particularly, exploring the full range of low-carbon opportunities that exist.”
The Epoch Times contacted the Department for Energy Security and Net Zero for comment.
