The publication of Project Willow – a government-backed roadmap to transform Scotland’s Grangemouth oil refinery into a low-carbon industrial hub – has triggered strong calls for immediate and decisive policy action from both industry and unions.
While the vision offers a glimpse into a greener industrial future, key voices warn that without firm government backing, the opportunity could slip away, putting skilled jobs and national energy security at risk.
Backed by £1.5 million in public funding, Project Willow sets out nine potential projects for the Grangemouth site, including advanced plastic recycling, hydrogen production, sustainable aviation fuel (SAF), and bioethanol made from wood. If delivered in full, the plan could generate around 800 new jobs – more than double the number at risk from the refinery’s proposed closure – and attract £3.5 billion in private investment over the next 15 years.
Yet serious doubts remain over the project’s feasibility and timing. Iain Hardie of Petroineos, which operates the site, compared the risk of inaction to the devastating closure of the Ravenscraig steelworks in 1992. He urged both the UK and Scottish governments to make immediate and tangible commitments to avoid repeating history.
Industry calls for support to deliver a viable low carbon future
Fuels Industry UK welcomed the ambition of Project Willow, and the spotlight it places on the long-term role of liquid fuels in the UK’s decarbonisation journey. However, the industry body raised concerns over the significant challenges that remain in creating a globally competitive environment for investment in low-carbon fuel production.
“Project Willow underscores the vital role that liquid fuels will continue to play in the UK’s transition to a lower-carbon future,” the organisation said in a statement. “However, the required investment will only materialise if the UK offers a globally competitive operating environment.”
With the UK’s refining sector under pressure from high energy and carbon costs, Fuels Industry UK is urging the government to:
- Reaffirm the strategic importance of liquid fuels in the UK’s energy mix.
- Address high domestic energy and carbon costs that put UK refineries at a disadvantage.
- Establish a stable regulatory framework to support investments in hydrogen, SAF, and carbon capture technologies.
Elizabeth de Jong, CEO of Fuels Industry UK, issued a stark warning: “The UK cannot afford to see another refinery closure. Decisive action is needed now if we are to retain a sustainable, competitive, and resilient fuels sector to power our country into the future.”
Union response: “Project Willow is not enough”
Unite, Scotland’s largest Union and one which represents a significant portion of the Grangemouth workforce, described Project Willow as a “significant and welcome development,” but criticised its lack of immediate action to preserve jobs. The union argues that while Petroineos may have used the project to justify the refinery’s closure, the site still has untapped potential for a rapid green transition – especially in SAF production.
General Secretary Sharon Graham was blunt in her assessment: “Project Willow was created by Petroineos as a fig leaf to justify its act of industrial vandalism – shutting the refinery and axing jobs. It asked the wrong questions and failed to deliver the answers Grangemouth workers need.”
Unite is calling on both the UK and Scottish governments to:
- Intervene immediately to secure a fair and swift workers’ transition.
- Fast-track viable low-carbon projects, particularly SAF production.
- Commission an independent review of existing Grangemouth assets to inform a just transition strategy.
Unite believes that SAF production could begin far sooner than Petroineos suggests, by starting with co-processing using existing infrastructure. The union argues that such a plan would not only protect jobs but also offer greater environmental benefits than importing fuels.
Derek Thomson, Unite’s Scottish Secretary, urged the governments to “act decisively” adding: “The options for the future of the Grangemouth refinery need to be fast-tracked. The workers need to see that the political will exists for a decent future for Grangemouth.”
A defining moment for Grangemouth and the UK’s energy future
The stakes at Grangemouth are high with the refinery’s future closely tied to that of the local community as well as to energy resilience, industrial capability, and a just transition to net zero. While Project Willow outlines a bold pathway for this strategically important site, its success depends on immediate government action, significant private investment , and a genuine commitment to the workforce.
Grangemouth has a chance to play a key part in the UK’s energy transition. But without clear political commitment, regulatory clarity, and investment in homegrown innovation and skills, there is a real danger that Project Willow will becomes a missed opportunity.
Image credit: INEOS