Labour has pledged a further £14.4 million fund to help Grangemouth’s transition to renewables amid doubts that it will be enough to revive the area.
Critics note that none of the initial £200m committed by the Prime Minister last year has yet been spent.
A UK Treasury source insisted the additional money was evidence that the UK government was “standing squarely behind communities like Grangemouth” which was hit by the closure of the oil refinery in April.
“These investments will help deliver a fair transition for Grangemouth, securing jobs for local people way into the future,” said the spokesman.
At the Scottish Labour Party conference in early 2024, Sir Keir Starmer pledged £200 million from the National Wealth Fund to match new investment from the private sector.
Earlier this month Syntech Biofuel said it will build a sustainable fuel plant, creating 200 jobs, but this is not thought to involve any direct funding support from either government.
The plant will be a sister to its facility in Kent which is being expanded. The company is a producer of low-carbon fuels, supplies biofuel to sectors such as construction, logistics, and transport. It intends to double its current production of one million litres of biofuel per month.
Jonny Haseldine, head of business environment policy at the British Chambers of Commerce, said: “News of a fresh £14.5m investment into renewables at Grangemouth is welcome but in isolation it may not prove enough to guarantee the town’s long-term success.”
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