Government Considering Converting Scotland’s Final Oil Refinery into a ‘Decarbonization Hub’
Dame Jackie Baillie emphasized that the Petroineos site has the potential to evolve into a ‘home for the energy industries of the future,’ particularly linked to carbon capture projects.
Scottish Labour has proposed that Scotland’s only oil refinery, set to close next year, could be reimagined as a “decarbonisation hub.”
Owned in partnership by British company Ineos and the Chinese state-owned PetroChina, Petroineos announced last November that it might transition from refinery operations to a fuels import terminal by 2025 due to global market pressures and the energy transition challenges it faces, employing around 500 workers.
Scottish Labour’s Deputy Leader, Dame Jackie Baillie, advocated for transforming the site into a hub for future energy industries, aligning with Prime Minister Sir Keir Starmer’s commitment to safeguard jobs there.
The Labour Party, now in power in the UK and Scotland, aims to balance adherence to climate laws with job preservation and energy security.
In their manifesto, Labour stated that oil and gas production in the North Sea will continue for decades, but new exploration licenses will not be issued, moving toward 100 percent clean power by 2030.
Dame Jackie discussed the possibility of establishing a decarbonisation hub connected to carbon capture and storage projects at Grangemouth, emphasizing the need for long-term planning.
Ian Murray, newly appointed Scottish secretary after Labour’s recent victory, highlighted the importance of addressing the refinery issues, with both governments working to find solutions.
The future of the refinery and low-carbon opportunities will be explored further in discussions with the workforce and relevant authorities, as efforts continue to navigate the challenges faced by the Grangemouth refinery.
Petroineos expressed optimism about the future transformation of the refinery, welcoming discussions with Keir Starmer’s team and anticipating the exploration of various low-carbon possibilities.
The Department for Energy Security and Net Zero was contacted for comment by The Epoch Times.
PA Media contributed to this report.
