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
