FOUR Scottish Labour MPs have called for the investment of public money into converting Grangemouth oil refinery into a Sustainable Aviation Fuel (SAF) production hub ahead of the site’s closure.
Falkirk’s Labour MP Euan Stainbank has written to the CEO of the National Wealth Fund, John Flint, requesting an “urgent meeting” to discuss the immediate action of converting Grangemouth into a eco-friendly facility for SAF production.
The Falkirk MP’s letter calling for urgent action was also signed by Scottish Labour MPs Brian Leishman, Kirsteen Sullivan, and Chris Kane.
Stainbank said that with the "UK’s SAF mandate already in force", immediate action should be taken to make sure Grangemouth remains a key player in Scotland’s energy transition.
Stainbank (below) added that the UK Government “cannot afford to wait” and that if it does not act now Scotland is at risk of losing a skilled workforce and the infrastructure which could secure the Grangemouth site's future for years to come.
It comes after Chancellor Rachel Reeves gave a speech where she laid out commitments to infrastructure projects in England, including "commitments to SAF [that] will support thousands of jobs in places like Teesside and Humberside".
Stainbank said: “Grangemouth is at a crossroads. We can either allow this refinery to close with no plan, with devastating consequences for jobs and the local economy, or we can seize the opportunity to support its acceleration into a hub for SAF production.
"The National Wealth Fund has a critical role to play in making that transition happen.
“We cannot afford to wait. The UK’s SAF mandate is already in force, and Scotland's only refinery is set to shut down in a matter of months. If we don't act now, we risk losing the workforce, the infrastructure, and the investment potential that could secure Grangemouth’s future for decades to come.”
SAF can be produced from a range of sources including household waste and used cooking oil and it has been claimed that renewable fuel can reduce carbon emissions by an average of 70% compared to traditional aviation fuel.
The UK SAF mandate requires that 2% of the UK’s total jet fuel demand is met by SAF in 2025, with the percentage increasing to 10% in 2030 and 22% by 2040.
Brian Leishman (below), MP for Alloa and Grangemouth, said the economic and social impact of the closure of Scotland’s only oil refinery will be “felt for decades to come”.
He added that time is running out for the UK Government to step in and “do the right thing” as he said it is “imperative” that they act immediately.
Leishman said: “The consequences of the Grangemouth refinery closing will reverberate around Scotland. This isn’t just a local constituency problem—this is the biggest industrial issue to impact our country in 40 years.
"If closure does indeed happen, then job losses on site will be in the hundreds and when we factor in the wider supply chain they will be in the thousands.
“The economic and social impact will be felt for decades to come, and the government should use all levers at its disposal to ensure a Just Transition where workers and their communities aren’t left behind. Time is running out for the Government to do the right thing and it’s imperative that they act immediately.”
Last year it was confirmed that Scotland’s only oil refinery will close in the second quarter of 2025 with the loss of 400 jobs.
Petroineos, which is a joint venture between Jim Ratcliffe’s petrochemical giant Ineos and Chinese state oil company Petrochina, announced the closure despite posting record profits of more than £100 million in March last year.
In October last year bosses at Scotland’s biggest airports backed a campaign to create an eco-friendly jet fuel facility at Grangemouth.
Rise, a coalition between some of the UK’s leading airlines, airports and engineers, launched a pledge to back SAF. Edinburgh, Glasgow, and Aberdeen airport bosses were among the backers of the campaign.
Bathgate and Linlithgow MP Sullivan said that investing in Grangemouth to convert it to a SAF production facility will provide a “vital opportunity” to protect jobs while contributing to the economy and securing a greener future for Scotland.
She said: “Swift action is essential to support our skilled workforce, ensure the industrial base is fit for the future, strengthen Britain’s energy security, and safeguard our communities. I stand with my colleagues in urging energy companies to engage with the National Wealth Fund to prioritise this crucial transition.”
Stirling and Strathallan MP Kane added: “It is vital that we retain the refinery and the jobs and ensure that the just transition is part of a bright future for Grangemouth and the Forth Valley economic region.
“The UK and Scottish Governments must have a laser-like focus on achieving the outcome we all want and need for Grangemouth in these crucial coming months.”
