The UK government has announced a £230 million loan to the owners of the Grangemouth petrochemical plant in Scotland, to build a facility to store ethane.
The plant will become home to Europe’s largest ethane storage tanks. The plant’s owners, Ineos, a multinational based in Switzerland, have invested over £300 million into the plant in recent times.
“The Grangemouth guarantee is fantastic news for Scotland’s economic future, and for the UK’s energy security,” said Chief Secretary to the Treasury, Danny Alexander.
The news comes less than a year after Ineos announced the plant was unviable and was to be closed, with losses of up to 800 jobs, and less than two months before Scots go to the polls, where the economy and jobs will be a decider for many.
Jim Ratcliffe, chairman of Grangemouth operator Ineos, said: “Without doubt, this is one of the most important projects of recent times in Scotland, with implications to be felt right across the UK, not only for employment but also for manufacturing in general.”