The industrial skyline of Petroineos Grangemouth is synonymous with the town and a massive employer in the area.

Many of its staff have worked there for years, through their apprenticeships and beyond. It was once seen as a lucrative and secure job for life.

It is therefore bittersweet to see the uncertainty of its future, but a process I feel is necessary to evolve its purpose, as green energy continues to be a key focus for Scotland.

The refinery has been part of the Grangemouth landscape for 100 years. Scottish Oils persuaded BP to locate its refinery to Grangemouth rather than the North East of England in 1924. Scottish Oils was acquired by a company which later became BP.

In 2005, BP sold the site to INEOS and in 2011, INEOS entered into a joint venture with PetroChina, creating Petroineos.

It supplies 70 percent of the fuel to Scotland's filling stations as well Northern Ireland and the north of England and is the primary supplier of aviation fuel for Scotland's main airports, a major supplier of petrol and diesel ground fuels across the Central Belt, and provides power to the Forties oil pipeline, which brings oil and gas ashore from the North Sea.

It’s not the first time the future of the site has been in jeopardy.

In 2008, 1,200 staff went on strike due to proposed changes to their terms including an end to the final salary pension scheme for new workers.

In 2013, another dispute with the union led to the plant being threatened with closure - which would have resulted in the loss of 800 jobs. Workers ultimately accepted revised terms and conditions, which included ending the final salary pension scheme and cutting shift allowances. This was part of the site’s survival plan which also included a £300m investment to keep the site open.

In 2014, INEOS acquired 729 sq miles of fracking exploration licenses in central Scotland and planned to invest up to £640m in shale gas exploration in the UK, which would have made it one of the largest shale gas players.

However, following the Scottish government's fracking consultation, an effective ban was put in place in 2017 following overwhelming opposition due to concerns about pollution, quakes, and undermining efforts to tackle climate change.

In 2019, £350m of investment was announced to build an energy plant at Grangemouth plus £500m for overhauling the Forties pipeline. But last year, Petroineos said the site has been facing significant challenges because of global market pressures and they plan to turn it into a fuels import terminal which would result in the loss of at least 400 jobs.

Following Labour taking the helm of the UK Government, Energy Secretary, Ed Miliband, is trying to find a future for workers at Grangemouth, after ministers from the Scottish and UK governments met the owners.

There are several options reportedly on the table - turn the plant into a Biofuel hub for sustainable aviation fuel, or for the production of green hydrogen, link it to the to North East carbon capture and storage project, or use it as a key port hub for Scotland’s renewable industries.

It was even suggested the site could be a worthy contender for the HQ of Labour’s power generation company, GB Energy instead of Aberdeen.

The Scottish Government first promised a transition plan in the 2022 programme for government and a draft strategy then pledged by the spring of 2024, which has still not been published.

With time ticking away, the Scottish and UK Governments must agree a plan of action with Petroineos swiftly before this landmark is no more. It may not be a particularly pretty landmark, but it has played an important role in Scotland’s economy over the years as a major employer.

With jobs on the line and an opportunity to benefit the country’s move to green energy, there must be a way to future-proof the Grangemouth plant, to extend the legacy of the site for everyone’s benefit.

 

SIDE 

Scotland is clearly one of the titans when it comes to the manufacturing sector in the UK and Europe.

The sector covers various industries from food and drink, renewable energy and resources and even life sciences, and employs around 170,000 people, generating a substantial £17 billion to the nation’s economy.

But, with already established success like this, it’s becoming increasingly more challenging for prospective businesses in Scotland to set up their foundations and a home base – not least due to an increasing lack of high-quality space in key locations such as Glasgow and Edinburgh.

I’m glad this concern is finally being considered though as Scottish Enterprise, with the support of Deputy First Minister Kate Forbes, has announced a £35 million Manufacturing Property Challenge Programme.

The fund aims to invite prospective property developers to create 1,000,000 sq. ft. of new industrial space across key locations, including the central belt and the North East of Scotland – hopefully providing a much needed new, modern locations for businesses to call home.

The first call of the programme will make £15million available for developers and combines a funding and support package over five years.

If successful we could see a boom in opportunities for manufacturing businesses to boost productivity and innovation, provide more jobs and even attract more interest from investors looking to support the next big upstart in manufacturing.

Here’s hoping this property fund is the first building block in a bright future for Scotland’s manufacturing sector.

 

LAUGH (129)

I’ve always found it fascinating how older utilities from a bygone era get recycled into something quirky and cool – such as phone booths turned into miniature libraries or, more noticeably in Glasgow and Edinburgh, old Police boxes becoming tiny spots for some scrumptious snacks. 

Well, one artisan dairy brand has decided to put one of these Police boxes to ‘butter’ use as the team at Wee Knob of Butter have started selling their premium spread from one.

The new café stop, found near Glasgow Botanic Gardens, will also sell coffees, pastries and picnic boxes from what they describe as the ‘world’s first butter box.’

I’d like to see this idea spread and I’m excited to see what people can perhaps start selling from phone booths or post boxes next.

 

WEEP (111)

When a Business Improvement District (BID) is established, its prime directive is usually to provide support and bolster local businesses through advice, projects and events. 

That’s why it’s disheartening to see several Glasgow businesses hit out at My Shawlands BID for allegedly forcing them to pay a levy towards projects and events, which they claim has had zero positive impact on their operations. 

If this is the case, then the fact that these same businesses are also receiving massive invoices from the BID team is simply embarrassing.

Fingers crossed that the My Shawlands BID team start listening to their local businesses and investing the levy money in initiatives that benefit them.