Hansard

I am delighted to update the Parliament on the tangible progress that is being made to secure Grangemouth’s long-term and sustainable future. The industrial cluster remains essential to both Scotland’s just transition to net zero and the future prosperity of our economy. The measures that I will set out today are illustrative of our commitment to realising the site’s potential. Grangemouth has a proud industrial history. For generations, it has powered Scotland’s economy and provided thousands of highly skilled and highly paid jobs. I am committed to continuing that legacy.

I want to be clear that the Scottish Government will not shy away from taking concrete action to address the challenges that the cluster faces and to support the people who rely on it. I want to ensure that Grangemouth helps to lead the way in our journey to net zero through new green energy opportunities and that we bring the valued and skilled workforce with us on that journey. We remain fully committed to using the limited regulatory and fiscal levers that are at our disposal to ensure that those who live and work at Grangemouth are not left behind in our transition to net zero and that they will, in time, benefit greatly from the opportunities that come to the industrial cluster.

Since the launch of project willow, there has been wide-ranging interest in Grangemouth. I can confirm that Scottish Enterprise has received more than 140 inquiries from businesses that are interested in establishing new projects in the industrial cluster. They include projects that align with the recommended technology pathways, as well as complementary projects that, if deployed, would deliver high-value jobs and industrial opportunities at Grangemouth.

The level of interest from domestic and international operators is testament to the dedication of the highly skilled workforce, which has undoubtedly secured the cluster’s reputation. It also illustrates Scottish Enterprise’s tireless efforts to actively seek out new opportunities, and it shows that Grangemouth is a good place to do business. By continuing to work with businesses to assess their potential and appropriateness and then putting in place the right level of public sector support, we can unlock Grangemouth’s potential by making the proposed projects market investable. That is why the First Minister has announced that £25 million will be made available during this and future financial years to support new projects and initiatives that secure Grangemouth’s long-term and sustainable future.

Today, I am pleased to announce the first significant funding awards for projects at Grangemouth—a hugely important milestone. This morning, I attended a groundbreaking ceremony for a project that is being progressed by MiAlgae, a home-grown, pioneering Scottish business. I welcome that the United Kingdom Government has listened to the direct calls made by me and by others across the chamber and has joined the Scottish Government and Scottish Enterprise in allocating up to £3 million between now and 2027 to support the construction of the company’s new commercial-scale bioreactor at Grangemouth.

The project will be capable of producing commercial-scale volumes of omega-3, a vital ingredient for global food and health industries. The facility will upcycle whisky by-products to produce omega-3. That is a clear example of the circular economy in action and will have tangible benefits for businesses and customers across the economy.

Presiding Officer, £1.5 million of that support represents the first funding from the Scottish Government’s Grangemouth just transition fund. MiAlgae believes that, if the project expands as planned, it will create up to 130 new direct jobs at Grangemouth by the end of 2029 as the company scales its technology and delivers subsequent bioreactor modules.

Although MiAlgae’s technology is not directly aligned with the pathways that are identified in project willow, its potential to create jobs and stimulate new industries at pace is exactly what our just transition plan is about. It represents a major step forward in diversifying the cluster and thus securing the future of the industrial base at Grangemouth.

However, MiAlgae is just the beginning. I am proud to announce that, subject to final negotiations and confirmation of public funding conditions, the Scottish Government and Scottish Enterprise will provide funding support to Celtic Renewables, a company at the cutting edge of biorefining technology, at Grangemouth. The Scottish Government is allocating £6.23 million from our Grangemouth just transition fund to support the next stage of the company’s acetone-butanol-ethanol—ABE—biorefinery project. Assuming that Celtic Renewables reaches commercialisation as planned, the project is expected to create up to 149 direct jobs at Grangemouth by the end of 2030. As with MiAlgae, those numbers are only set to increase as the business continues to scale up its technology and expand the market for its products.

Critical to securing a long-term and sustainable future for the Grangemouth industrial cluster is ensuring that the foundational components are optimised to attract investment. Therefore, I am pleased to confirm to the Parliament that we are also providing up to £595,000 to Scottish Enterprise to ensure that key enabling works to prepare the site for future investment are progressed at pace. Those activities will centre on addressing infrastructure, utilities, land and connectivity challenges across Grangemouth. Those challenges have been put to me by businesses, Fife Council and others through the Grangemouth future industry board. I trust that that is a clear sign that we are listening to the needs of businesses and, in collaboration with them, delivering on our commitment to take targeted action that secures the long-term and sustainable future of the industrial cluster.

Most important, we continue to prioritise the workforce and the local community, who are central to that work. On 29 October, in partnership with Unite the Union, the First Minister announced that new conditionality would be applied to all funds awarded as part of the Grangemouth just transition fund. That will take the form of a guaranteed interview scheme, for workers who have been made redundant at Grangemouth, for the new roles that will be created as a result of the funding that I am announcing today. I am grateful for the support that Unite the Union has provided in bringing that proposal to fruition. Its expertise and insight have helped us to drive forward our activity and ensure that workers are at the forefront of our efforts.

That represents a just transition in action, helping workers to secure new opportunities and ensuring that their vital experience, skills and knowledge are not lost to Grangemouth or Scotland. It shows that the Scottish National Party Government is putting people at the heart of change.

Furthermore, I confirm to the Parliament that the Scottish Government intends to continue funding a community participation manager to support Grangemouth’s just transition for the next two years. That role, which is funded as part of the greener Grangemouth programme, is a key delivery partner for the Grangemouth just transition plan, and its existence is one of the recommended actions in the plan. Critically, the role remains a key conduit to ensuring that the voices of the community are at the heart of everything that we do in pursuit of the cluster’s transition. My commitment to provide an additional £150,000 over the next two years will support CVS Falkirk & District to continue that critical work.

Grangemouth is changing and, as a result of the Government’s actions, the hope of a bright future is being built. From biorefining to innovative start-ups to global players, the site is a beacon of Scotland’s green industrial future. It is a story of partnership between Governments, industry, trade unions, the workforce and communities. It is a story of resilience and ambition. It is a story that shows that Scotland can lead the world in delivering a just transition that creates jobs, attracts investment and tackles climate change head on.

However, today’s announcements are by no means the limit of our ambition. More must be done and will be done. I give my commitment to members—not least my colleagues Michelle Thomson, Michael Matheson and Falkirk Council leader, Councillor Cecil Meiklejohn, who have been unwavering in their commitment to stand up for their constituents, local businesses and, crucially, the workforce and local community—that the Scottish Government will not rest until we have explored every opportunity and realised our ambition of a long-term and sustainable future for Grangemouth.