Chamber and committees

My understanding is that that is because of the high sulphur content of North Sea oil.

I absolutely appreciate your point. I agree that the situation going forward, to a lesser or greater degree, involves us offshoring our carbon footprint rather than taking responsibility for it. However, that is the situation that we face right now, because only about 30 per cent of North Sea oil is refined at Grangemouth for the industrial reasons that have been well set out.

There are two elements to Murdo Fraser’s question. First, what he said about where customers will be able to source their fuel from is incorrect, because the transition to an import terminal means that they will still be able to source their fuel from Grangemouth.

Secondly, it is the UK Government that has responsibility for energy security. I believe that a UK minister will be before the committee in the new year to answer such questions. However, I have received assurances from the joint venture and from UK ministers that contingency plans are in place for Grangemouth in relation to the situation now and in the future, and that the transitional arrangements that have been announced for the import terminal are all about ensuring energy security.

No. I do not believe that that will be the case, because our transition to green energy sources and the continued operations at Grangemouth mean that there will be job opportunities in the energy sector for people in Scotland in the future. There will be a need to utilise our highly skilled people and technical expertise—particularly in the subsea elements, but also in the refinery elements—to ensure that our green industrial revolution can continue. Therefore, with respect, I do not accept the premise of Mr Fraser’s question. There will still be huge opportunities for people in Scotland to work in the energy sector for many decades to come, whether that is in the oil and gas sector or the green energy sector.

I would point to the work that has been done on the just transition plan and on the green industrial strategy, which will be published early in the new year. That should give certainty to people who currently work in traditional energy sectors, such as the oil and gas sector, that there will be job opportunities as a result of the many diverse projects that we hope to secure in order to have a strong manufacturing industrial supply chain that feeds green energy opportunities. Those might be in pumped hydro storage, in floating offshore or onshore wind, in the marine energy sector or in hydrogen production and utilisation.

There will be many opportunities for people with high skill levels, such as those who work at Grangemouth, to transition and take up other jobs, so that we retain them in Scotland. That is a critical factor in the work that we are doing, and it is our ambition to retain as many of those workers as possible in Scotland.

We are already seeing some of that transition in action. I was in Aberdeen a couple of weeks ago when I opened the new Scottish and Southern Electricity Networks offices, and I believe that a third of the SSEN workforce has already transitioned from the oil and gas sector. For the benefit of Mr Fraser’s confidence, I note that that transition is already happening.

Again, the regulation of the transportation of hydrogen thereafter is still to be confirmed by the UK Government. The joint venture and Ineos will need to explain this in more detail, but my understanding is that the offtake is there, and that is making the commercial decision for the decarbonisation of the production that Grangemouth is utilising.

Mr Whittle’s previous question was about jobs and retaining as many people in the oil and gas sector as possible. I also share the ambition to retain as many people in the energy sector in particular but in other opportunities in Scotland. We want to see a just transition for that highly skilled and valued workforce. I do not deny that there are competing opportunities around the world. I want to ensure that, through our work, particularly in relation to the supply chain for the offshore wind sector and the green industrial strategy that we are developing, we can show a line of sight for people to have a strong energy-related career in the green industries here in Scotland.

Susie, did you want to come in on that point?

We have been given some warning that the potential date for the refinery closure is quarter 2 in 2025. That is helpful for the work that we are doing on the just transition plan, as it allows us to ensure that the plan is tailored. It also means that, through the work that we are doing with the joint venture, the other businesses involved in Grangemouth and other interested parties, including the local authority concerned—which I met last week—we can ensure that we do everything that we can to bring forward a just transition plan that gives people confidence about the opportunities that will be available in and around Grangemouth.

Obviously, we have an assessment and understanding, based on previous studies, of where oil is currently imported from. As you would expect, we do not have a huge amount of control over the commercial decisions that are taken on where to source it from. Mr Hardie said earlier this morning that Petroineos wants to ensure that it sources products from places that meet international standards. I assume that that includes health and safety as well as the standards on the production of the products.

That is fine.

I do not want to set up unrealistic expectations. Previous interventions to extend the capacity of the refinery were made when the international perspective and domestic demand were different. Alongside my colleagues in the UK Government, I want to explore every single possible opportunity to extend the life of the refinery. I think that Mr Kerr would expect that of both parties. However, I do not want to make false promises about what might be possible; I just want to demonstrate to Mr Kerr’s regional constituents, and to others more widely, that we are doing everything possible.