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Scotland’s Lone Oil Refinery to Close Down in the Coming Year – EcoWatch

“Scotland’s Grangemouth Oil Refinery to Close in 2025: What’s Next for the Industry and Community?”

Scotland’s Grangemouth oil refinery, the country’s only oil refinery, is set to close by the summer of 2025, as reported by The Guardian on September 12, 2024. The closure of this historic refinery, which is the oldest in Britain, will impact the 500 employees who work at the site and will also have repercussions for Scotland’s industrial base.

The owner of the Grangemouth refinery, Petroineos, a joint venture between PetroChina and British company Ineos, cited an inability to compete with larger, more modern facilities in Africa, Asia, and the Middle East as the reason for the closure. The refinery will be transformed into a fuel distribution hub and import terminal, with operations expected to cease during the second quarter of the following year.

To support the workers and the community affected by the closure, the governments of the United Kingdom and Scotland have pledged joint funding of approximately $26 million. This investment will go towards new local energy projects and is in addition to a $105 million growth deal for Grangemouth and the neighboring Falkirk area.

UK Energy Secretary Ed Miliband emphasized the government’s commitment to helping the workforce find alternative employment opportunities and to ensure a viable industrial future for the Grangemouth site. The deal is expected to inject more than $824 million into the Falkirk area economy over the next three decades and create 1,660 jobs.

Despite significant investments in Grangemouth since 2011, Petroineos reported losses exceeding $775 million during the same period. The company stated that the refinery is currently incurring daily losses of approximately $500,000, with a projected loss of $200 million for 2024.

The decline in demand for fossil fuels produced at Grangemouth, coupled with the impending ban on new gas-powered and diesel cars, has contributed to the refinery’s financial challenges. In response, the Scottish and UK governments have funded a study to explore alternative industries for the site, including low carbon, hydrogen, clean fuels, and sustainable aviation fuels.

Local politicians and trade unions have criticized the decision to close Grangemouth, with Unite union’s general secretary Sharon Graham calling it “industrial vandalism.” The union has urged the government to prioritize the protection of workers’ jobs as the country transitions to a net-zero economy.

As Scotland prepares for the closure of its last oil refinery, stakeholders are working to mitigate the impact on workers and the community while exploring opportunities for a sustainable industrial future.

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