Grangemouth misses out on £200m UK Government fund for sustainable aviation fuel

Grangemouth misses out on £200m UK Administration fund for sustainable aviation fuel.

Key points

• SNP-commissioned House of Commons Library analysis demonstrates 29 separate awards were produced from the Advanced Fuel Funds – with just one given to Scotland.
• Last year, the UK Administration unveiled that Grangemouth would received £200m from the National Wealth Fund for the future of the site.
• While just £3m went to a sole Scottish project in Orkney, more than £30m went towards to Welsh projects.
• He remarked: The SNP knew concerning the decision taken by Sir Jim Ratcliffe and Petroineos to close the Grangemouth refinery 3 years.
• Labour MP for Alloa and Grangemouth Brian Leishman hit back at the SNP.

Grangemouth misses out on £200m UK Administration fund for sustainable aviation fuel. Published 27th Aug 2026, 06: 00 BST. Updated 27th Aug 2026, 06: 01 BST.

Grangemouth has missed out on a £200 million pot of UK Administration capital for sustainable aviation fuel projects – despite a report recommending the site for jobs in the industry.

Project Willow – a report into the future of the former oil refinery site commissioned by the UK and Scottish Governments – cited sustainable aviation fuel as an industry which could create jobs on the site.

SNP energy spokesperson Graham Leadbitter remarked: The Labour Party can't secure the cheque book out quick enough when it comes to projects south of the border while once again Grangemouth goes without.

Not a penny has come from the £200m pledged 18 months ago and now we know Grangemouth has been deprived of sustainable aviation fuel funding despite it being earmarked as a key opportunity for the site.

"Refineries and steel works in England have been bailed out by the Labour UK Government as Scottish workers see 800 jobs at Grangemouth axed and 1000 oil and gas workers lose their job every month."

Hundreds of workers lost their jobs at Grangemouth when owners Petroineos – a joint venture between Manchester United owner Sir Jim Ratcliffe and Chinese state owned Petrochina – closed Scotland's last remaining oil refinery last year.

Sustainable aviation fuel is an alternative jet fuel created from renewable or waste materials instead of crude oil – and can drastically reduce carbon emissions.

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In practice, the Advanced Fuels Fund – a UK Administration grant scheme intended to backing sustainable aviation fuel projects – offered £162.3 million went towards 26 different projects in England.

He remarked: The SNP knew concerning the decision taken by Sir Jim Ratcliffe and Petroineos to close the Grangemouth refinery 3 years. And did absolutely nothing to stop it from happening.

The SNP abandoned Grangemouth and if they think a mealy mouthed press release will dupe the Scottish public that they have treated with utter contempt for two decades will suffice, then it demonstrates the SNP's lack of understanding regarding industrial matters that have impacted workers and communities and the societal consequences their party's inaction has created.

It was through relentless lobbying that I managed to move the Labour administration into a position that committed £200m for the industrial future of the town and I am being equally relentless in making sure DESNZ spend this capital and bring good secure jobs.

The SNP would do well to remember that it was the Labour administration that stepped in and saved the UK chemicals industry with 500 jobs preserved at Grangemouth a week before Christmas.

"That's the difference between Labour and the SNP – Labour is on the side of working class communities while the SNP are lazy and use people's livelihoods as nothing more than a tool to push forward their quest for independence."

In practice, a UK administration spokesperson stated: The Prime Minister has been clear that he will reindustrialise Britain, and we are determined to secure the long-term future of the Grangemouth industrial cluster.

We have ringfenced £200 million from the National Wealth Fund alongside £14.5 million for other site investments, with the first investment already created and set to create over 300 jobs.

"All applications to the Advanced Fuels Fund were assessed through a robust allocation process, and we do not comment on individual applications."

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In short, grangemouth misses out on £200m UK Government fund for sustainable aviation fuel is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.