The guarantee will allow work to start at Grangemouth straight away and the first order for construction materials has already been placed.

The Treasury has confirmed it will guarantee a £230 million loan for Grangemouth petrochemical plant in Scotland to build Europe’s largest ethane storage tank.

The project will protect thousands of jobs in Scotland and is critical for the long term future of the site.

The guarantee will allow work to start at Grangemouth straight away and the first order for construction materials has already been placed.

This is the latest infrastructure project to be supported by the UK Guarantees scheme which underwrites loans for major infrastructure across as energy, transport, communications, waste and housing.

Chief Secretary to the Treasury, Rt Hon. Danny Alexander MP said:

“Over £1 billion of infrastructure projects have now been brought forward as a result of the UK guarantees scheme and £36 billion worth of projects are pre qualified.

Our action is creating the right conditions for more investment in our infrastructure, helping to build a stronger economy and a fairer society across the country.

The Grangemouth guarantee is fantastic news for Scotland’s economic future, and for the UK’s energy security.”