GRANGEMOUTH, Scotland – As steam dissipates from the cooling towers of Scotland’s only oil refinery, the future of one of the UK’s most carbon-intensive sites — and the community it built — hangs in the balance.
More than 400 workers are being made redundant as the Grangemouth refinery, a century-old industrial cornerstone, shutters operations amid deep losses and unfulfilled promises of a “just transition.” The closure, confirmed by Petroineos on April 29, marks a symbolic and economic turning point for both Scotland’s industrial legacy and its clean energy ambitions.
Scotland’s Oldest Refinery Falls Silent
The Grangemouth refinery, opened in 1924, has been phased out following years of financial turbulence. Petroineos — a joint venture between British chemicals conglomerate INEOS and China’s PetroChina — cited daily losses of around $500,000 (£376,600) driven by shifting global markets and tightening carbon regulations.
The site will transition into an import terminal, employing just 65 workers — a stark contrast to the hundreds of skilled jobs it once provided.
Andrew Petersen, a third-generation refinery worker, said the shutdown felt like “digging your own grave.” Alongside his colleagues, he has spent the past six months powering down the plant unit by unit.
“It was really tough,” he told AFP. “You got the feeling you’re almost digging your own grave.”
‘Accountability Breakdown’ in Just Transition
While the UK and Scottish governments pledged support for greener industries, campaigners say efforts to transition the site — and its workforce — fell flat.
A feasibility study titled Project Willow, released this year by Petroineos and UK ministers, explored potential future uses of the site, such as producing Sustainable Aviation Fuel (SAF) or advanced plastic recycling. However, the vision remains hypothetical: full implementation could take a decade and billions in public-private investment — money not yet committed.
Despite a £200 million government pledge, the funds remain contingent on private backing. Unite the Union and local MP Brian Leishman say that timeline offers little comfort to workers already facing redundancy.
“A real, proper, just transition means that you take the workers and their communities along with you,” Leishman said.
Richard Hardy of the Just Transition Commission called the Grangemouth case a “car crash” and warned it risks becoming a cautionary tale for climate policy rollouts across the UK.
A Boomtown’s Bleak Horizon
Grangemouth was once hailed as Scotland’s industrial boomtown. Today, its population has shrunk to 16,000, and with the refinery closure, more families are expected to leave.
Local businesses are already feeling the downturn. Robert Anderson, who runs a butcher shop in the town centre, said foot traffic has thinned out as workers vanish from the streets.
“We don’t see them anymore,” he said of the refinery’s workers.
Young residents, like 19-year-old Hannah Barclay, worry about what’s left behind. With few higher education prospects and dwindling job opportunities, many are staring down a future of uncertainty.
“It’s just quite disheartening to see all these young people who should be really excited for the future, who are just scared,” Barclay said.
Energy Security and Supply Concerns
Grangemouth was one of just six UK crude oil refineries and the primary supplier of aviation fuel for Scotland’s airports. Its closure raises concerns about regional fuel supply resilience and highlights the UK’s increasing reliance on imported energy — even amid net-zero ambitions.
Calls from local leaders to follow the model used at British Steel — where the UK government recently intervened to save furnace operations — have so far gone unanswered.
“Being in charge of our own destiny, for me, that’s just plain common sense,” Leishman argued.
