Scotland’s Last Oil Refinery Shuts, 400 Jobs Lost
Scotland is set to lose its final oil refinery. The Grangemouth site will close early next year, costing 400 jobs. Despite last-ditch efforts from unions and local officials, the decision stands firm.
This marks a major blow to the UK’s refining industry. Once a key fuel producer, Grangemouth’s closure leaves just five oil refineries in the UK still running.
Why Grangemouth Is Shutting Down
Frank Demay, head of Petroineos Refining, spells out the reality: “Demand for key fuels we produce at Grangemouth is already falling. With a ban on new petrol and diesel cars coming within a decade, demand will shrink even more.”
The refinery has been struggling financially against cheaper, more modern rivals in the Middle East, Asia, and Africa. Grangemouth will be turned into a fuel import terminal, mirroring a move seen at London’s Coryton refinery over ten years ago.
Political Fallout and Future Plans
Ed Miliband, Secretary of State for Energy Security and Net Zero, expressed his disappointment: “The closure of this key facility is disappointing for Scotland and for the UK as a whole.”
Ineos, a major partner at Grangemouth, says chemical processing units will keep running. The firm is now exploring new roles for the site, working with Scottish and UK governments.
Plans are underway to transform Grangemouth into a centre for cleaner energy. Under Project Willow, Ineos aims to produce sustainable aviation fuel, low-carbon hydrogen, and synthetic fuels. The group hopes to identify commercially viable green energy options by spring 2025.
End of an Era, Start of a Green Shift
The shutdown of Scotland’s last oil refinery highlights the UK’s ongoing move away from fossil fuels. As climate targets tighten, greener fuels and cleaner energy alternatives are stepping into the spotlight.
