Source · Select Committees · Scottish Affairs Committee
Recommendation 19
19
Accepted
Clarity needed on Grangemouth investment decisions and taskforce integration.
Conclusion
Continued momentum on the future of Grangemouth is vital. Project Willow must not be left to gather dust while jobs are at stake. We welcome the Scottish Government’s £25 million Just Transition Fund and the UK Government’s commitment of £200 million in ringfenced National Wealth Fund funding to leverage private investment in Grangemouth’s future. However, more clarity is needed on how decisions about investable proposals will be made, and how the Government’s taskforce on Project Willow recommendations will feed into the investment taskforce. This is crucial as it is potentially in the Government’s gift to unlock certain projects through regulatory changes. (Conclusion, Paragraph 137)
Government Response Summary
The government agrees on maintaining momentum for Grangemouth, announcing £14.5 million in funding and describing the due diligence process undertaken by investment agencies. They commit to understanding and providing necessary policy or regulatory support as projects emerge to unlock investment.
Government Response
Accepted
HM Government
Accepted
We agree that it is important to maintain momentum at Grangemouth and we are leaving no stone unturned to transform Grangemouth into a low carbon and clean energy hub. To support this goal, at the Autumn Budget 2025 the Chancellor announced up to £14.5 million of UK Government funding for Grangemouth to support future projects and back Grangemouth’s transition to a hub for low carbon technologies as the UK Government cements Scotland’s place as the home of the UK’s clean energy revolution. The investment agencies of the UK and Scottish Government – the Office for Investment and Scottish Enterprise – are undertaking due diligence on all enquiries that the Grangemouth Investment Taskforce receive. The funding announced at Budget will be used to support these projects. On 11 December, the first project to benefit from this funding was MiAlgae – a Scottish sustainable biotechnology company. A reflection of the ongoing close collaboration between the UK and Scottish Governments, and we have jointly backed with up to £3 million grant funding for the company to enable it to establish its first commercial manufacturing facility at the site. Securing this investment is a landmark moment as the Grangemouth Investment Taskforce works at pace to unlock more opportunities at Grangemouth having received around 140 enquiries for the site. We are working closely with several other projects with further announcements expected soon. Due to commercial sensitivity we cannot provide further information on those projects at this point in time. As projects emerge through the Grangemouth Investment Taskforce we will work as quickly as possible to understand what we can do to support investors in developing projects at Grangemouth, including what policy or regulatory support is needed to enable investment.