February 27, 2025 [Rigzone]- The UK has increased potential financial support for the transition of the Grangemouth oil refinery in Scotland to a low-carbon future.

The government will make an additional £200 million ($253 million) available for Grangemouth — where oil-refining operations are to halt this year — according to a statement. The private sector will have to commit its own funds to projects in order to unlock the support, it said.

With production of fuels like diesel and gasoline to cease, there has been speculation that the Grangemouth site could be used to make what’s known as sustainable aviation fuel. Airlines must use 2% of the fuel, mostly made from used cooking oil and vegetable oils, from this year and the UK has a target to have five production plants under construction by 2025.

The funding announced Sunday by Prime Minister Keir Starmer is in addition to already committed support. A previously announced initiative dubbed Project Willow, which is tasked with identifying commercially viable opportunities for the site, is to report in the spring, according to the government statement.

Ineos, which operates the Grangemouth oil refinery, is to retain chemicals operations at the site.

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