There have been many words spoken and written about the future of Grangemouth as an important manufacturing base for Scotland – however, recently, political self-interest appears to have overtaken the truth.
As the owners who have operated and funded the refinery since 2011, it was with a heavy heart that we took the decision to move towards bringing refining to an end next year and to invest our money instead in a terminal that will import and distribute the fuel Scotland needs to keep moving.
In an effort to reduce carbon emissions, this country’s two governments are gradually banning petrol and diesel, by not allowing new vehicles to use those fuels. In Scotland this ban begins in 2030. We don’t oppose those decisions, but nobody should be surprised that an oil refinery producing those products will struggle.
It is a fact that the refinery loses hundreds of thousands of pounds every day and has relied in recent years on the two owners – PetroChina and INEOS – propping it up. Since 2011, those losses now amount to over £1.2 billion. Put simply, no business can keep losing that kind of money indefinitely.
It is also true that no offers have been received to buy and manage the refinery. We understand why people cling to rumours about mysterious buyers swooping in to save the refinery, but any expressions of interest have fallen at the first hurdle.
The men and women who work at Grangemouth deserve a more intelligent debate about their future than the one being played out by politicians and trade unions, who are naturally defensive at having missed the opportunities we gave them several years ago to talk to us about an orderly and fair transition away from fossil fuels to cleaner energy.
When the Labour government was elected in July, new ministers asked for time to understand the refinery’s finances in detail and consider any action they might take in response. We gave them that time but never received an offer of government help or financial support to extend the life of the refinery, either from Edinburgh or London.
Despite meaningless statements about pausing the closure or confusing suggestions that the refinery can become a biofuels plant overnight, politicians and the trade unions have left it too late.
But it is not too late for us all to co-develop a bright future for Grangemouth, producing low-carbon fuel and eventually creating hundreds of skilled jobs here again.
In the absence of any government action, we came up with Project Willow, which is now supported by Westminster and Holyrood and which is the only real option to create the conditions for that exciting future.
Without it, there would be very little for either of our governments or unions to talk about regarding the future of manufacturing where the refinery exists today.
If we want to seize new opportunities, rebuild Grangemouth as a modern, thriving manufacturing site and treat the workforce with respect and fairness, we urgently need a more grown-up debate that focuses more on the future than on the past. We will all be failing if we don’t make that happen. We have long been ready to play our part.
Iain Hardie is regional head of legal and external affairs at Petroineos