First Minister John Swinney has called on the UK government to match his £25 million pledge to help workers affected by the closure of the Grangemouth refinery.

A transition fund has been set up help up to 400 employees affected by the decision of Petroineos, a joint venture between Sir Jim Ratcliffe’s Ineos and Petrochina.

Amid calls for more to be done to keep the plant open, Mr Swinney called on the UK government to bring forward other projects, such as carbon capture.

“The initial funding the UK Government has provided for the Growth Deal is welcome,” said Mr Swinney in a statement to parliament. “But spread over a ten-year period, this funding does not recognise the urgency of the situation now faced in Grangemouth and needs to be accelerated.

“My government has made the strategic decision to support this key activity through an additional draw down of ScotWind revenue totalling £25 million, to add to the £7.8 million in our budget for 2025-26.  Altogether, the Scottish Government – with a finite budget – has committed or already invested £87 million in Grangemouth.

“We need the UK Government to do at least the same and deliver a fair amount to avoid significant economic disruption in central Scotland, and to protect and promote Scotland’s – and Grangemouth’s – future interests.

“In short, we need the UK government to do what it said it would do before the election.”

The First Minister said his government believes that refining at Grangemouth should continue, that the closure is premature, and detrimental to Scotland’s transition to net zero.

The government is working with Scottish Enterprise to secure “an investible, industrial strategy for the site”, supporting Ineos’s fuel switching project, that recognises the criticality of transitioning to cleaner fuels, such as hydrogen.

He said that the aim of the Just Transition Fund is to expedite any of the potential solutions that will be set out in the Project Willow report, as well as other proposals that will give Grangemouth a secure and sustainable future.

“Through the Grangemouth Future Industries Board, we will work with the local authority, businesses and the unions to explore and accelerate projects and proposals that support this ambition,” he said.

“Through Project Willow, we will have the foundations of a strong evidence base for future investment in technologies such as plastics recycling, hydrogen production and the development of sustainable aviation fuel.

“We will also consider proposals made by UNITE and its members, and continue to pursue other options, including any as yet unknown potential investments.”

Contrary to claims on social media that Labour ministers in London have walked away from Grangemouth, Mr Swinney acknowledged that there has been engagement between the United Kingdom Government and the Scottish Government with Petroineos to try to avert the closure of Grangemouth.

“I want to put on record my appreciation to Gillian Martin [Scottish acting Energy Secretary] and respective UK Ministers, Ed Miliband [Energy Secretary] and Michael Shanks [Energy minister] for their leadership in this regard,” said the First Minister.

On 5 February, Petroineos confirmed that it would cease refining operations, and began notifying the workforce of redundancies.

The company has said that 65 workers will be retained at the replacement import terminal. As of today’s date, up to 19 companies have indicated their participation in a careers fair.

“Just yesterday, I met with the Energy Secretary, Ed Miliband where we both agreed that the collaboration between our two governments has been constructive. We also agreed for that to continue,” said Mr Swinney.

“I have also had several discussions with the Prime Minister, and I will continue to ensure that my government, at all levels, engages meaningfully and substantially.

“That is because I am convinced that Grangemouth can and does have a potentially bright future contributing to Scotland’s net zero economy, and I want the government I lead to do everything possible to secure that future.

“The Scottish Government will continue to urge the UK Government to put adequate measures on the table to address the immediacy and urgency of the situation at Grangemouth.

“That is necessary because I understand fully the consequences for the Scottish economy of the closure of the Grangemouth refinery at this critical juncture.

“The UK Government clearly recognises the need to safeguard economic and energy interests.”

However, Mr Swinney said the UK government needs a similar response to that given to other areas of the UK.

He said that in October, the UK Government announced £21.7 billion for carbon capture and hydrogen projects in Merseyside and Teesside – but ignored Scotland. Grangemouth cannot wait for this to be dragged out any further by the UK Government.

“Just last weekend, the UK Government said up to £2.5 billion will be put towards supporting the steel industry via the National Wealth Fund; and the production and development of Sustainable Aviation Fuel in Teesside has already received in the region of £50 million in support from the Advanced Fuels Fund.

“The support for Sustainable Aviation Fuels developments in Teesside comes on top of UK Government support for Carbon Capture and Storage in Teesside when there has been no green light offered for the project involving Grangemouth.”

He noted that Scotland and Grangemouth is “well-placed to lead on the production of green hydrogen” and a number of Scottish businesses submitted funding proposals to the UK Government’s hydrogen allocation round which closed last April – nearly a year ago.

“These businesses are still awaiting a UK Government decision on shortlisting. We need immediate progress on this,” he said.

Responding to the First Minister’s statement, Grangemouth, SNP MSP for Falkirk East Michelle Thomson said: “I am pleased that the Scottish Government has today announced concrete action to improve the future for Grangemouth and its workforce.

“The Labour government at Westminster must match this action, having invested hundreds of millions in similar projects across England, to ensure the survival of Grangemouth and protect the livelihoods which depend on it.”

Scottish Green MSP Gillian Mackay, whose party’s policies on oil and gas have been partly blamed for the imminent closure of the refinery, joined the call for the UK government to work with Holyrood and unions to protect jobs and skills.

“The reality is that the biggest decisions have to be made in Westminster. Labour promised that they would protect jobs but since taking office they have done nothing of the sort. They simply got people’s hopes up and walked away.”

Scottish Conservative leader Russell Findlay MSP said: “The skilled workers at Grangemouth make a crucial contribution to Scotland’s economy, but they have paid the price for Labour and the SNP’s hostility to oil and gas.

“Grangemouth isn’t just important for achieving net zero in the future, it’s vital for our energy security right now. But SNP and Labour ministers are putting this at risk because of ideological dogma.

“While we welcome the additional funding that has been announced today, John Swinney needs to accept responsibility for the SNP’s anti-oil and gas stance, and its role in Grangemouth’s demise.

“It’s just common sense that, while we still need oil and gas, we should be producing it in Scotland rather than relying on costly imports.”