HM Treasury has confirmed it will guarantee a £230M loan for Grangemouth petrochemical plant in Scotland to build Europe’s largest ethane storage tank.
This will allow work on the scheme to start immediately.
It is being supported by the UK Guarantees scheme, which underwrites loans for major infrastructure across as energy, transport, communications, waste and housing.
INEOS AG, the owners of the Grangemouth plant, said the ethane tank will be central to the site’s plans to import shale gas from the USA.
Jim Ratcliffe, INEOS chairman, said: “Our ability to import US shale gas underpins the future of manufacturing at Grangemouth and across many businesses in Scotland. It is a vital step towards preserving the long term future of the Grangemouth site and those businesses that depend upon its continued presence in Scotland.”
Chancellor George Osborne said: “The UK Guarantees scheme is a key part of our long term economic plan to equip the whole country with the infrastructure it needs to compete, and is only possible because of the credibility of the UK government’s balance sheet. The Grangemouth project is the first project of its kind being supported by this radical, innovative approach.
“It will provide essential raw materials to industries across the UK and through our action we are helping to secure thousands of skilled, well paid, long term jobs for the future.”