Investor urges public-private refinery rescue deal

The consortium claims a joint venture would ensure returns for both the taxpayer and private investors

An investment group has expressed interest in joining forces with the government to buy an oil refinery that went into liquidation in June.

Led by investor Marc Amram, the group says it wants to run Lindsey Oil Refinery in North East Lincolnshire, with the government retaining ownership while its revival and operation would be financed by private equity.

The group claims the partnership "would protect British jobs, safeguard national energy security, and revive a critical UK refinery, without costing the taxpayers a penny".

Energy Minister Michael Shanks said the Official Receiver was independently assessing potential bids and would "work with all with credible and deliverable proposals".

He said: "The Official Receiver has made this independent decision now in order to provide employees with as much notice as possible, while concluding the sales process in the coming weeks.

"The majority of the workforce will be retained beyond the end of October and we remain hopeful that a solution will be found that supports jobs on the site long-term."

The refinery's owners, the Prax Group, went into administration in June

Speaking on behalf of his investment consortium, Mr Amram said: "This is a moment for leadership and partnership.

"Labour has made a clear commitment to rebuild Britain's industrial strength and protect working families.

"Our proposal delivers exactly that — British control, private investment and a stronger, self-sufficient energy future."

Stopping the closure of the site would also eliminate the need for costly decommissioning.

North Lincolnshire Council had previously suggested a 30-year programme of remediation would be needed if the site closed down.

According to the Local Democracy Reporting Service, the profit-sharing joint venture would ensure returns for both the taxpayer and private investors.

The investment consortium believes it would create a long-term model for how Britain can modernise its energy sector responsibly and sustainably.

As it stands 255 workers directly employed at the refinery will remain employed beyond October and 125 workers were given redundancy notices in September.

The Department for Energy Security and Net Zero said it had funded a Training Guarantee for refinery workers "to support them to find new, secure, long-term jobs, including in the growing clean energy workforce".

Employees affected by redundancy would be able to enrol in the scheme from October, it added.

Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.

Download the BBC News app from the App Store for iPhone and iPad or Google Play for Android devices