The plan to build Europe’s largest ethane storage facility has been given the go-ahead after the Treasury agreed to financially back the £230m project.


The Scottish plant in Grangemouth will have the £230m loan underwritten by The Treasury in order that the petrochemical facility can be constructed in the wake of financial uncertainty surrounding the Scottish independence debate.

The scheme is the latest in a line of infrastructure projects to be given a UK Guarantee with others including Hinkley Point C and Mersey Gateway Bridge.


In a positive note for the construction sector Chief Secretary to the Treasury, Danny Alexander said more than £1bn of infrastructure projects have received UK Guarantee backing.


The UK Guarantee will enable the Scottish plant to raise the funding necessary following planning permission which was granted in May by Falkirk Council.


INEOS chairman Jim Ratcliffe 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.”