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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 25 December 2024
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Displaying 1041 contributions

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Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

Good morning. I want to go back to some of the comments that have already been made about the Scottish cluster and the Acorn project. To quote you, Mr Pritchard—if I misquote you, you can tell me—you have said that your plans remain unchanged around the Scottish cluster and the Acorn project and that you are continuing with them. However, you are looking at a substantial change to the business. Could you explain why you feel that your commitment and your planned works for the Scottish cluster and the Acorn project remain unchanged?

10:00  

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

Okay.

I want to move to a few other issues to do with the biorefinery. I would also like to hear a little bit more about your plans for hydrogen, which you have already mentioned. Beyond that, where are you with regard to sustainable aviation fuel and its production, which will be extremely important? What will be the impact of the proposed closure of the refinery—you are unable to tell us when that will be at this moment—on those ambitions? Beyond that, what effect does the refinery plans have on the confidence of future investors in relation to what you are looking to scope for the future?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

I will move on a bit, because there has been talk of energy security. Members have asked questions about the Forties pipeline and what comes in at Kinneil. You have discussed in great depth current exports to ARA, and you have talked about a crude mix from international markets.

With regard to energy security and the carbon footprint, is not there an argument that more crude oil should come in through the Forties pipeline to Grangemouth? You have talked about Finnart and about the pipeline being used for diesel. I have not heard anything about petrol or kerosene and how they would come into the import plant. From an energy security perspective, would not it be better to utilise the Forties pipeline to Grangemouth more, rather than relying on international shipping coming in to Finnart? Do you have a general comment on that? I might then have some specifics to address.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

We also discussed hydrogen production and the biorefinery project earlier this morning, and the previous panel was keen to talk about importing sustainable aviation fuel. Have you had any discussions with the UK Government and other partners about manufacturing sustainable aviation fuel? As an Orcadian, you will realise the essential role that aviation will continue to play in Scotland as we move forward. What can be done to try to ensure that Scotland plays a part in manufacturing SAF? Can that be done at Grangemouth as part of the just transition?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

There was also some discussion earlier this morning about energy security and the impacts of international markets. In relation to the import hub plan, the previous panel made a point about diesel coming in at Finnart and going to Grangemouth through the existing pipeline, but I asked a question about the carbon footprint of importing that diesel. You talked about the international market and about refineries in China and the middle east being much more modern and competitive, but the carbon footprint of importing from China, the middle east or wherever it may be is huge. It may well be that our carbon footprint will reduce if there is no refinery at Grangemouth, but the carbon footprint of importing could be greater.

I recognise that this is the UK Government’s responsibility, but have you looked at whether we could utilise the Forties pipeline to take crude from the North Sea basin and continue to refine at the likes of Grangemouth? From an energy security point of view in this weird and wonderful world that we live in, that would probably be the best way. It would also cut down our carbon footprint compared with importing diesel, petrol and kerosene—and, in the future, the likes of SAF.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

Sure.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

I am aware of the high sulphur content and the fact that crude from the North Sea basin goes elsewhere. There was talk of other refineries in north-west Europe earlier. However, maybe there could be investment in a new modernised refinery—if the UK Government was willing to do that—to take account of the high sulphur content of crude from the North Sea basin in order to get to the right end products, such as diesel, petrol and kerosene. I am no expert on this, but I have been told on many occasions by folks who are experts that refineries have a peak point in dealing with certain crudes. Maybe we could do that at Grangemouth as we move on.

Is it worth having that discussion with the UK Government, which has the primary responsibility, in order to ensure that we continue to have energy security and to stop the importing and reduce the carbon footprint?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

There was no demand in your original business plan to ensure that you were supplying the refinery.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

Just mix it all up, please.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

It is the importation aspect that gets me. We are talking a lot about energy security. Let us look at this in layman’s terms. We have the North Sea basin producing crude. You are refining that crude into various products.