An oil refinery located in Scotland planned for decommissioning next year could find new life as a sustainable aviation fuel (SAF) production facility thanks to a joint investment plan announced by the U.K. and Scottish governments on Sept. 12.

Petroineos, an oil refining joint venture between PetroChina and INEOS, has announced plans to decommission its refinery located in Grangemouth, Scotland. The facility is scheduled to cease oil refining during the second quarter of 2025. 

In announcing plans to decommission the Grangemouth refinery, Petroineos cited global market pressures and competition from bigger, more modern and efficient sites in the Middle East, Asia and Africa. The company said it has lost more than $775 million since 2011 despite having invested more than $1.2 billion to maintain the refinery’s safe operation. 

The U.K. and Scottish governments have been working to deliver an investment plan that will help secure the site’s industrial future and protect its skilled workforce. As part of that effort, the joint-funded Project Willow study has identified a shortlist of three credible options to begin building a new long-term industry at the refinery site. Those options include the production of low-carbon hydrogen; the production of clean eFuels synthesized from chemical components like hydrogen or carbon dioxide; or the production of SAF from feedstocks such as forestry and agricultural waste, used cooking oil, or carbon captured from the air. 

Additional information is available on the U.K. government website.