Committee publication · Scrutiny evidence · 5 February 2025

Note of visit to Rosyth, Grangemouth, Aberdeenshire, and Inverness – November 2024

From: Scottish Affairs Committee

Inquiry: GB Energy and the net zero transition

Summary

The Scottish Affairs Committee visited six energy and manufacturing sites across Scotland (25–27 November 2024) to gather evidence for its inquiry into GB Energy and the net zero transition. The visit covered Rosyth Dockyard's military shipbuilding, Grangemouth's oil refinery closure, floating offshore wind development, carbon capture and storage, and the Inverness Green Freeport. Key themes included the need for industrial strategy, just transition support for oil and gas workers, skills development, and infrastructure investment.

Key findings

  • Grangemouth oil refinery closure will reduce 450–500 jobs to approximately 75; emissions costs of importing refined products mean no net emissions benefit from closure.
  • Lack of demand visibility and long planning timescales hinder investment in floating offshore wind and new technologies; demonstration sites are critical but lacking.
  • Project Acorn carbon capture and storage initiative could become economically viable if CO₂ storage costs fall below carbon tax costs and has potential to provide services across the UK and internationally.
  • Highland and Island workers face inequality of opportunity due to geography, distance to training, and grid/consenting delays; short time window exists before jobs migrate to Europe.
  • Industry and educators emphasised need for credible industrial strategy, government risk underwriting, skills acceleration, housing and infrastructure investment, and earlier planning (five years prior suggested for Grangemouth transition).

Tone

Procedural

Topics

energy-transitionnet-zeromanufacturingrenewable-energyindustrial-strategy

Key actors

Patricia Ferguson MP (Chair), Babcock (Rosyth Dockyard), Petroineos and Ineos (Grangemouth), Flotation Energy and Kincardine Offshore Windfarm Limited, ORE Catapult, Storegga and North Sea Midstream Partners (Project Acorn), Inverness and Cromarty Firth Green Freeport, Forth Valley College

Notable line

… planning for the future of Grangemouth should have begun five years earlier to minimise the impact of the refinery closure …

Key Quotes

… the emissions costs of importing refined oil products in future means that the refinery closure will bring no benefit in terms of emissions reductions.
Committee summary (Grangemouth discussion) · on the paradox of the Grangemouth refinery closure
… planning for the future of Grangemouth should have begun five years earlier to minimise the impact of the refinery closure …
Committee summary (Grangemouth discussion) · on timing of industrial transition planning
… there is a need for a credible, coherent industrial strategy, and that there is a risk of international competitors outpacing the UK in these sectors.
Committee summary (Grangemouth discussion) · on policy requirements for clean energy manufacturing
… action should have been taken several years earlier.
Cliff Bowen (Unite the Union) · on preparing for the refinery closure
… there is a short time window to address these challenges, before jobs move elsewhere in Europe.
Committee summary (ICFGF roundtable) · on urgency of Highland infrastructure and skills investment
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Source · parliament.uk record ↗

Note of visit to Rosyth, Grangemouth, Aberdeenshire, and Inverness – November 2024 | Beyond The Vote | Beyond The Vote