Grangemouth ‘jobs gap’ will take years to bridge, commission warns

It will likely take years to bridge the “jobs gap” left by the closure of the refinery at Grangemouth, an independent advisory group has warned.

The Just Transition Commission said there should be a premium on creating jobs in the region “here and now”.

Scottish Government ministers were also told to take a proactive role in measuring the impact of the industrial transformation.

Hundreds of redundancies are expected at Grangemouth as the oil refinery closes later this year, with only 65 jobs out of around 500 being retained.

It was announced last year that the central Scotland facility would transition to become an import terminal, as owners Petroineos reported massive losses at the refinery.

A £1.5 million initiative jointly funded by the UK and Scottish governments, known as Project Willow, is examining the feasibility of Grangemouth becoming a low-carbon energy hub.

The Just Transition Commission has now written to Scottish Acting Energy Secretary Gillian Martin, welcoming recent funding for Grangemouth’s future and urging it is spent wisely.

It said one of the main strategic considerations is to “bridge the jobs gap” and apply lessons to the wider oil and gas industry.

The letter says: “The new industrial mix at Grangemouth will likely take some years to replace the employment lost from the refinery, including activities within Project Willow, as emerging technologies become established.

“Consequently there is a premium on investment that provides a rapid jobs stimulus to the region here and now.

“Consideration should be given to public works programmes, including in retrofit, solar panel fitting, etc.”

Co-chairman of the commission Professor Dave Reay said: “The disorderly closure of the Grangemouth refinery is a warning of just how difficult and expensive it is to try to achieve a just transition in a reactive mode rather than planning ahead.

“As a commission we want to see clear indications now that lessons are being learned and our governments are getting ahead of anticipated changes as we decarbonise our economy, including in the North Sea, so that workers, communities and responsible businesses are properly supported.”

Acting Cabinet Secretary for Net Zero and Energy Gillian Martin said she welcomed the commission’s research.

Ms Martin said: “We have been clear that we will leave no stone unturned to find the right solutions to secure the future of Grangemouth – including both the refinery site and the wider industrial cluster.

“Our £25 million Grangemouth Just Transition Fund, announced by the First Minister last month, was established in direct response to the challenges being faced at Grangemouth and is demonstrable evidence of the Scottish Government’s commitment to the future of the site.

“This research will inform our work to revise our Grangemouth just transition plan following public consultation, and will support the development of the final plan, due to publish in spring this year.”