John Swinney has pledged a further £25 million to secure a “just transition” for Grangemouth, calling on the UK Government to match the Scottish Government’s funding.
The First Minister said the Labour Government must “do what it said it would do before the election”.
However, he praised the recent discussions he has had with Labour ministers Ed Miliband and Michael Shanks on the future of the industrial site.
Earlier this month, redundancy letters were sent out to staff at the oil refinery owned by Petroineos – with some 65 of around 500 jobs expected to be retained.
It was announced last year that the central Scotland facility would close and transition to become an import terminal, as Petroineos reported massive losses at the refinery.
A £1.5 million report into the feasibility of Grangemouth becoming a low-carbon energy hub, known as Project Willow, is due to be published by the end of the month.
John Swinney announced the new funding in a statement to the Scottish Parliament on Tuesday, saying it would come from ScotWind revenues in a budget amendment.
Mr Swinney said: “Any redundancy, whether voluntary or compulsory, is a matter of deep regret.
“That is particularly so given that this government believes that refining at Grangemouth should continue, that this closure is premature, and that it is detrimental to Scotland’s transition to net zero.”
A careers fair will take place on March 6, he said, with 19 companies taking part.
He said the additional £25 million for the Grangemouth just transition fund would take the Scottish Government’s total investment for the site to £87 million.
This new money will expedite any proposals which come from Project Willow, he said.
The report is examining other industries which could exist on the site such as plastics recycling, hydrogen production and sustainable aviation fuel.
© Andrew Milligan/PA WireHe said collaboration with Energy Secretary Mr Miliband would continue, but he urged the UK Government to at least match the Scottish Government’s just transition fund.
The First Minister said: “We need the UK Government to do at least the same and deliver a fair amount to avoid significant economic disruption in central Scotland, and to protect and promote Scotland and Grangemouth’s future interests.
“In short, we need this Labour Government to do what it said it would do before the election.”
The recent UK Government’s recent growth deal money does not recognise the urgency of the situation, he said.
Scottish Conservative leader Russell Findlay welcomed the funding announcement but blamed the Scottish Government for creating a “hostile environment” for fossil fuel firms.
He said: “I find it remarkable that in a statement of around 1,600 words the words ‘oil and gas’ were not even mentioned once.
“The truth is that the party who used to champion Scotland’s oil now seem to regard it as a dirty word.
“Grangemouth workers know that the anti-oil and gas sentiment from the SNP in Edinburgh and Labour in London has been fatal.”
Scottish Labour leader Anas Sarwar said he and the First Minister shared a “deep frustration” with Petroineos over its decision to close the refinery, despite attempts to keep it open.
But he added: “Governments have known of the company’s intentions for five years but failed to put plans in place.
“But over the past seven months the UK and Scottish governments have worked collaboratively to deliver the Falkirk and Grangemouth Growth Deal, joint working on Project Willow and joint attempts to secure incomes for workers for the next 18 months.”
Reacting to the new, Unite general secretary Sharon Graham said: “The extra money from the Scottish government is welcome but workers in Grangemouth have already been let down and we will need more that this to fix the situation. Both the UK and Scottish governments must now pull out all the stops to ensure that we do not lose these refinery workers and their incredible skills.
“Unite has a clear plan for the site to produce sustainable air fuel (SAF) and these workers have the skills to do that. As we heard following the Heathrow announcement, the UK government needs UK SAF production to meet its own green energy targets. So, I hope this announcement is a signal that politicians are finally going to stop dancing around their handbags and do everything needed to ensure that Grangemouth starts delivering SAF as soon as possible.”
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