Parliament Workbench
Data: Motions & questions to 19 Nov 2026

Written Question · S6W-30246 · Session 6

Whether it has made any representations to PetroIneos to state that seed capital for site preparation and infrastructure in the outer bound…

Answered Asked by Richard Leonard Lab Lodged 26 Sep 2024

The question

To ask the Scottish Government whether it has made any representations to PetroIneos to state that seed capital for site preparation and infrastructure in the outer boundary of Green Freeports will not be made available for the proposed import-export terminal in the event that PetroIneos pursues the closure of the Grangemouth oil refinery.

The answer

Answered by Kate Forbes on 11 Oct 2024 · 15 days after it was lodged, on time

As you will know, delivery of Green Freeports are a joint initiative between the Scottish Government and the UK Government, with a detailed programme in place to do this. Responsibility for the various incentives (including tax and seed capital) lie with the appropriate government.The Forth Green Freeport consortium recently submitted their Full Business Case (FBC). Officials are currently reviewing this
- including analysis of potential tax and customs incentives across the sites.Tax sites were designated at an earlier stage of the business case process, and include an area of land owned by Petroineos Manufacturing Scotland Ltd (PIMSL). This area is not involved in the current fossil-fuel refining operations, and is designated for bio-refining and low carbon fuels manufacturing. The nature of the potential development in this particular area is the subject of a proposed study, called Project Willow, which it is intended will be developed in collaboration between PIMSL, INEOS, the Scottish Government and its agencies.The Forth Green Freeport is focused on the transition to net zero, and supporting that transition through targeted seed capital funding. None of the proposals for seed funding include the proposed Petroineos import-export terminal, nor are there customs sites proposals involving Petroineos.Once the business case process is complete, both governments and Forth Green Freeport will agree a detailed Memorandum of Understanding which will include monitoring and evaluation of the delivery and impact of the Green Freeport. The Scottish Government has worked in partnership with the UK Government to ensure that specific provisions on Just Transition, Fair Work and the Real Living Wage are critical parts of Green Freeport monitoring and evaluation.The decision by Petroineos to cease refinery operations is of course a blow to the workforce and local community. PACE (Partnership Action for Continuing Employment) is the Scottish Government’s initiative for responding to redundancy situations. Through providing skills development and employability support, PACE aims to minimise the time individuals affected by redundancy are out of work. PACE partners SDS and Scottish Enterprise had a joint introductory meeting with Petroineos on 3 October 2024 to outline the support available to employees impacted by the planned closure of refining operations.We believe that the wider Grangemouth site retains the potential to be utilised as part of Scotland’s low-carbon transition, and it has been identified as a potential site for future low carbon technologies which will not only drive Scotland’s economy, but contribute to our transition to net zero.This is why the Scottish and UK Governments have confirmed a £100m package for Falkirk and Grangemouth, including our £40 million contribution to the Growth Deal and £10 million for community projects in Grangemouth and an additional £10m announced by UK Government after Petroineos’ decision to close the refinery site, as well as the £1.5m Project Willow study (jointly funded by the Scottish and UK Governments) which aims to look at options for developing new long term industry at the refinery site.My officials will continue to work in partnership with the Forth Green Freeport team, and with UK Government counterparts in order to ensure the successful delivery of the Green Freeport, to the benefit of the communities in the region, and to the wider economic success of Scotland.

In the Official Report

No contribution in the Official Report cites S6W-30246 by reference.