The investment comes on top of the £100m Falkirk and Grangemouth Growth Deal, delivered jointly with the Scottish Government, which will invest in local energy projects, and the £1.5m Project Willow, which is examining the site’s green energy and hydrogen potential, and will report in the spring.

“We will grasp the opportunities at Grangemouth, work alongside partners to develop viable proposals and team up with business to get new industries off the ground,” Prime Minister Starmer said.

Unite general secretary Sharon Graham welcomed the news after months of campaigning. “This needs to be the start not the end in delivering a real workers’ transition for Grangemouth,” she said.

“Following this announcement, it is essential that all stakeholders come together to put the meat on the bones and that this investment counts for jobs and our security. Clear timescales will be important as well as details on jobs.”

Unite has been leading the campaign to save the refinery and for it to transition to a facility producing sustainable aviation fuel (SAF), which is critical for the government to meet its environmental targets.

First Minister John Swinney has committed £25m additional funding to the Grangemouth Just Transition Fund.

The First Minister called on the UK Government to continue to work together with the Scottish Government to drive forward the next phase of Project Willow; to expedite a decision on Acorn and the Scottish Cluster of carbon capture projects; and to make urgent progress on allocating funding for the second round of hydrogen production projects.

Its draft budget for 2025-26 allocates £7.8m for support at Grangemouth including £2.8m in the forthcoming financial year, and £5m over three years, to support INEOS’ Fuel switching project.

“We have worked closely with the business and Scottish Enterprise to develop this project, recognising the criticality of transitioning to cleaner fuels such as hydrogen,” he said.

“In October, the UK Government announced £21.7bn for carbon capture and hydrogen projects in Merseyside and Teesside – but ignored Scotland. Grangemouth cannot wait for this to be dragged out any further by the UK Government.”

Last month INEOS closed its ethanol plant in Grangemouth, blaming the lack of energy strategy and high carbon taxes continue to ‘de-industrialise Britain’.

“Energy prices have doubled in the UK in the last five years and now stand five times higher than those in the US. The UK cannot compete with such a disadvantage,” according to an INEOS statement.

H2 View reported in September 2022 that INEOS had awarded Atkins a contract to design its low carbon hydrogen plant at Grangemouth. The plant, expected to be operational by 2030, will further reduce emissions from the site by 1Mtpa as the site targets Net Zero by 2045.

Read more:  INEOS awards Atkins hydrogen plant design contract at Grangemouth