SUBSCRIBE
PROFILE

UK allocates £200 million for the transition of the Grangemouth refinery

British Prime Minister Keir Starmer has announced an additional £200 million in funding to support the conversion of the Grangemouth industrial site in Scotland, which is set to close this summer.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

SUBSCRIBE - 99$/year

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

British Prime Minister Keir Starmer has announced the release of an additional £200 million to facilitate the transition of the Grangemouth industrial complex in Scotland. This announcement comes as the refinery, Scotland’s only and the UK’s oldest, is scheduled for closure next summer by its owner, Petroineos.

A key site undergoing transformation

Petroineos, a joint venture between British group Ineos and Chinese company PetroChina, plans to convert the refinery into a fuel import terminal, putting over 400 jobs at risk. Speaking at the Scottish Labour Party conference in Glasgow, Starmer described this investment as “a bet on Scotland’s industrial future.”

This funding is in addition to the £100 million already committed jointly by the UK and Scottish governments. Beyond financial support, the government plans to fund professional training programmes to facilitate the redeployment of affected employees.

Union support and calls for clarity

Unite, one of the UK’s largest trade unions, welcomed the initiative, calling it “a step in the right direction.” However, the union emphasised the need for further details on how the allocated funds will be used, stating that this should mark the beginning of a genuine transition for Grangemouth workers.

Additionally, Starmer reaffirmed the continued importance of oil and gas in Scotland’s energy mix for decades to come while highlighting the potential of the Grangemouth site for an industrial renewal focused on clean energy. He insisted on a pragmatic approach to the transition towards renewables, stressing the vital role of fossil fuels in ensuring national energy security.

An evolving energy policy

Since returning to power in July 2024, the Labour government has launched an ambitious green energy plan, aiming to position the UK as a global leader in the sector, notably through the newly established state-owned company Great British Energy. In September 2024, the country reached a historic milestone by shutting down its last coal-fired power plant, marking the end of coal use in electricity production, a first among G7 nations.

  • Popular on energynews.pro
Post-CfD renewable assets expose investors to increased market risk
ExxonMobil freezes Baytown, major blow to US blue hydrogen sector
Grenergy multiplies its net profit by seven and surpasses €700mn in CAPEX
South Korea under pressure from the IEA to liberalise its electricity market
Iberdrola launches a public offer to acquire 100% of Neoenergia in Brazil
Canada reforms Energy Efficiency Act to align policy with digital markets
The Canadian government introduces major legislative changes to the Energy Efficiency Act to support its national strategy and adapt to the realities of digital commerce.
Quebec maintains sole carbon price at the pump despite federal tax repeal
Quebec becomes the only Canadian province where a carbon price still applies directly to fuels, as Ottawa eliminated the public-facing carbon tax in April 2025.
India invests $872mn to locally produce rare earth permanent magnets
New Delhi launches a 72.8 bn INR incentive plan to build a 6,000-tonne domestic capacity for permanent magnets, amid rising Chinese export restrictions on critical components.
Long-term contracts reshape electricity market risk over 30 years amid volatility
The rise of CfDs, PPAs and capacity mechanisms signals a structural shift: markets alone no longer cover 10–30-year financing needs, while spot prices have surged 400% in Europe since 2019.
Berlin plans to acquire 25.1% of TenneT Germany by early 2026
Germany plans to finalise the €5.8bn ($6.34bn) purchase of a 25.1% stake in TenneT Germany to strengthen its control over critical national power grid infrastructure.
Ghana restructures its power sector around domestic gas to contain deficit
The Ghanaian government is implementing a reform of its energy system focused on increasing the use of local natural gas, aiming to reduce electricity production costs and limit the sector's financial imbalance.
Suriname targets 220,000 barrels per day in oil strategy by 2028
On the 50th anniversary of its independence, Suriname announced a national roadmap including major public investment to develop its offshore oil reserves.
China’s installed power capacity reaches 3.75 bn kW, up 17.3 %
China's power generation capacity recorded strong growth in October, driven by continued expansion of solar and wind, according to official data from the National Energy Administration.
Trump revives US offshore with 34 lease sales planned between 2026 and 2031
The 2026–2031 offshore programme proposes opening over one billion acres to oil exploration, triggering a regulatory clash between Washington, coastal states and legal advocacy groups.
The Mozambique centralises its gas infrastructure to secure the Beira–Rompco corridor
The government of Mozambique is consolidating its gas transport and regasification assets under a public vehicle, anchoring the strategic Beira–Rompco corridor to support Rovuma projects and respond to South Africa’s gas dependency.
NESO launches national consultation to plan regional energy infrastructure
The British system operator NESO initiates a consultation process to define the methodology of eleven upcoming regional strategic plans aimed at coordinating energy needs across England, Scotland and Wales.
COP30 locks in adaptation, avoids fossil phase-out and opens a climate regulatory front
The Belém summit ends with a technical compromise prioritising forest investment and adaptation, while avoiding fossil fuel discussions and opening a climate–trade dialogue likely to trigger new regulatory disputes.
Asian Development Bank commits $700mn to support Kyrgyz Republic’s energy strategy
The Asian Development Bank and the Kyrgyz Republic have signed a financing agreement to strengthen energy infrastructure, climate resilience and regional connectivity, with over $700mn committed through 2027.
UK urged to choose between carbon capture and aviation fuels
A study from the Oxford Institute for Energy Studies finds that energy-from-waste with carbon capture delivers nearly twice the climate benefit of converting waste into aviation fuel.
Sipperec renews electricity concession contract with EDF and Enedis
Signed for 25 years, the new concession contract between Sipperec, EDF and Enedis covers 87 municipalities in the Île-de-France region and commits the parties to managing and developing the public electricity distribution network until 2051.
The CRE assesses the gradual restart of retail energy markets
The French Energy Regulatory Commission publishes its 2023–2024 report, detailing the crisis impact on gas and electricity markets and the measures deployed to support competition and rebuild consumer trust.
Over 80 countries push for roadmap on fossil fuel phase-out at COP30
Gathered in Belém, states from Africa, Asia, Latin America and Europe support the adoption of a timeline for the gradual withdrawal from fossil fuels, despite expected resistance from several producer countries.
Europeans tighten the noose around Iran with targeted IAEA resolution
The E3 and the United States submit a resolution to the IAEA to formalise Iran's non-cooperation following the June strikes, consolidating the legal basis for tougher energy and financial sanctions.
UK creates taskforce to strengthen energy resilience after Heathrow outage
The United Kingdom launches a taskforce led by the Energy Minister to strengthen the security of the national power grid after a full shutdown at Heathrow Airport caused by a substation fire.
India targets $68bn in Japanese investment to boost gas and hydrogen
New Delhi is seeking $68bn in Japanese investment to accelerate gas projects, develop hydrogen and expand LNG import capacity amid increased openness to foreign capital.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

START - 99$/year

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.