New union plan proves refinery could become bio-fuels hub for Britain - saving thousands of jobs

Grangemouth transition to SAF (Sustainable Aviation Fuel) production would be a huge net zero achievement for Britain and also a vital strategic asset

Unite, the UK’s leading union, which represents the workforce at Grangemouth, has written to energy secretary Ed Miliband demanding action on Grangemouth (see notes to editors for full letter from Unite general secretary Sharon Graham).

In September, Grangemouth’s owners Petroineos announced that it intended to close the only refinery in Scotland with the loss of over 400 directly employed jobs, in the second quarter of 2025. The closure would also result in thousands more jobs being lost in the company’s supply chain.

In the letter to Ed Miliband, Unite general secretary Sharon Graham said:

“A Labour government not putting together a serious plan for the future of the site and the thousands of jobs which depend on it, would be a huge dereliction of duty.

“How this government deals with the threatened closure at Grangemouth will be the key test of your commitment to a just transition for workers and communities, and to our future energy security.”

Unite has produced a detailed plan which demonstrates how Grangemouth can relatively easily be initially converted into a Sustainable Aviation Fuel facility, before further developing into a full bio-fuels outlet. The creation of a SAF facility is entirely in line with government policies. Unite’s research has found that converting an existing refinery is 30 – 70 per cent cheaper than building a new facility. 

Unite’s report also highlights serious concerns about Petroineos’ lack of transparency and a lack of evidence from the company about the need to close the refinery. Unite’s report further details how Petroineos has a conflict of interest. The company is half owned by PetroChina which is ramping up its own production of SAFs and would look to import them to the UK.

Unite further highlights how the Project Willow research plan is jam tomorrow and has some similar conflicts of interest.

Therefore, Unite has called on Mr Miliband to agree to a three-part plan:

  •        An immediate pause to closure threats and an independent review into the state of the refinery with a detailed transition plan. This would involve the establishment of a Grangemouth Transition Plan body, with the UK and Scottish Governments taking a stake as “Investors of first resort”. Unite believes that other investors would be interested if Ineos refuses to commit.

  •        A rapid transition to Hydo-processed Esters and Fatty Acids (HEFA) based SAF conversion in 1 – 3 years, without job losses.

  •        A long-term transition to advanced SAF and other fuel technologies, the full details to be agreed by the independent review.

Unite general secretary Sharon Graham said: “Unite has established a clear pathway for the future of Grangemouth, which is totally in line with the government’s own support for sustainable fuels. To close Grangemouth now is madness.

“It is incumbent on the government to take decisive action. It must break away from the mistruths and distortions created by Petroineos which is putting its own interests ahead of those of the workers, the Scottish economy and the UK as a whole.

“Continued inaction by the government will not be forgiven or forgotten. A failure to act will totally undermine the confidence of workers across multiple sectors facing huge upheaval as we move to a green economy.”

ENDS

Notes to editors:

Ed Miliband letter in full

For media enquiries ONLY please contact Unite senior communications advisor Barckley Sumner on 07802 329235.

Email: barckley.sumner@unitetheunion.org

Twitter: @unitetheunion Facebook: unitetheunion1 Instagram: unitetheunion Web: unitetheunion.org

Unite is the UK and Ireland’s leading union fighting to protect and advance jobs, pay and conditions for members working across all sectors of the economy. The general secretary is Sharon Graham.