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UK Approves £120 Million Rescue to Keep Britain’s Last Ethylene Plant Operating

Ministers framed the conditional deal as a test case for their Modern Industrial Strategy to cut industrial energy costs.

Overview

  • The government will provide over £120 million alongside about £30 million from INEOS in a roughly £150 million package expected to secure around 500 direct jobs at Grangemouth.
  • Safeguards mean public funds can only be used for site improvements and the government has a right to share in future profits, with INEOS making operational commitments.
  • Ethylene from the site supports medical‑grade plastics, water treatment and advanced manufacturing, and the plant is tied into the Forties Pipeline System.
  • Officials cited high UK industrial energy prices as a key threat and pointed to the British Industrial Supercharger and the proposed British Industrial Competitiveness Scheme to lower costs for energy‑intensive sectors.
  • ExxonMobil’s Mossmorran ethylene plant remains scheduled to close in February 2026, with a joint taskforce and expanded training guarantees arranged for affected workers and £200 million from the National Wealth Fund earmarked for new projects at Grangemouth.