Grangemouth Faces £3.5 Billion Challenge for Low-Carbon Transition

The closure of Scotland's century-old oil refinery in 2025 highlights economic and environmental hurdles, with sustainable aviation fuel emerging as a key focus.

The Grangemouth oil refinery is set to close this year, leading to the loss of hundreds of jobs and sparking efforts to transition the site to low-carbon manufacturing.
The Project Willow report outlines nine potential projects, including sustainable aviation fuel (SAF) production, requiring a total of £3.5 billion in private investment.
The UK and Scottish governments have pledged £200 million and £87 million, respectively, to support the transition, but significant private funding is still needed.
Union leaders advocate prioritizing the SAF project, which could save jobs, reduce reliance on imported oil, and begin operations by 2035 with a £2.1 billion investment.
The transition faces challenges due to the higher costs of low-carbon alternatives compared to fossil fuels, requiring policy and regulatory support to attract investors.