THE closure of Grangemouth is “nothing short of an economic crisis’, Kate Forbes has said.
The Deputy First Minister made the comments in a ministerial statement in Holyrood on Wednesday, just a day after Grangemouth’s owner Petroineos confirmed the refinery has ceased processing crude oil.
The industrial site in central Scotland was the last oil refinery operating north of the border.
Forbes said the end of oil processing at Scotland’s last refinery was a “dark moment” in the country’s industrial history.
However, she said Scottish Enterprise has received 66 inquiries related to Project Willow – which plots a future for Grangemouth in low-carbon energy – as well as other activities at the site.
“The decision by Petro Ineos is nothing short of an economic crisis,” Forbes told MSPs.
“And we need the UK Government to work with us to respond quickly, as we know that it can.”
She added: “It's a very sad day for Grangemouth and for Scotland, and we are deeply sorry for the workers and the wider community.”
In recent months, hundreds of workers have taken voluntary redundancy while a number of compulsory redundancies have also been made.
“The decision of last September [to close the refinery] was and is premature,” Forbes said.
“It jeopardises our transition to net zero, negatively impacts the Scottish economy and leaves us reliant on imported fuel. We have continually called on the UK Government to do more, to intervene and to stop this needless act of economic vandalism.
She added: “The UK Government could have chosen to underpin operations of the refinery to bridge the transition to new technologies, or as we've repeatedly called for, intervention to enable sustainable aviation fuel production at Grangemouth.”
Petroineos has said the refinery is loss-making and has rejected claims from unions that the site could easily transition into a hub for producing sustainable aviation fuel.
In London today to meet Michael Shanks and get an update from Scottish and UK agencies on the work of our joint investment task force for the Grangemouth Industrial Cluster. There’s been a good deal of commercial interest in the opportunities published in the Project Willow study pic.twitter.com/apWhayeFs1
— Gillian Martin (@GillianMSP) April 30, 2025
On Wednesday, UK energy minister Michael Shanks and Scottish Energy Secretary Gillian Martin (above) met to discuss the joint work both administrations are undertaking.
“There’s been a good deal of commercial interest in the opportunities published in the Project Willow study,” Martin claimed afterwards.
The significant report commissioned by the Scottish and UK governments, known as Project Willow, aims to chart a future for the site in low-carbon energy.
But the report said this would require around £3.5 billion of private investment.
Meanwhile, Toni Giugliano, the SNP’s former policy convener, has today (Wednesday) called for a £1 billion joint investment plan from the UK and Scottish Governments.
“Grangemouth can’t be another Ravenscraig - we can’t afford another slow decline. Project Willow gives us a clear and credible roadmap for a just transition, but to attract private investors both governments must demonstrate their own public commitment," he said.
"The private sector will need those initial signals of confidence and support. If that doesn't happen fast, those opportunities will go elsewhere. A joint £1 billion commitment from the UK and Scottish Governments would help to futureproof the site and kickstart the transformation of our industrial base."
