4. To ask the First Minister whether he will provide an update on the Scottish Government’s latest engagement with the United Kingdom Government regarding the status of the Grangemouth refinery. (S6F-02760)

Last week, the Cabinet Secretary for Wellbeing Economy, Fair Work and Energy chaired the first meeting of the Grangemouth future industry board, which includes representatives of the refinery, its workforce and the UK Government. I am encouraged that the UK Minister of State for Energy Security and Net Zero responded positively to Neil Gray’s request to consider any proposal that supports a long-term and sustainable future for the Grangemouth industrial cluster, recognising its strategic national importance to the economy of the whole of the UK. My Government is committed to exploring all options to extend the life of the refinery and to bring forward new transition projects at pace.

I also welcome the UK Government’s support of the Tata Steel plant in Wales, and I look forward to a constructive dialogue on a similar package being made available for Grangemouth. The cabinet secretary has written to the UK Government to seek a further discussion.

It is indeed heartening to hear that the UK Government is now open to giving support to the vitally important chemical cluster at Grangemouth, which is in my constituency. There is the potential for the refinery to transition quickly to a biorefinery to be utilised for sustainable aviation fuel—in other words, there could be a just transition for workers right now. That would require support from the UK Government in respect of its policy barriers surrounding the hydroprocessed esters and fatty acids—HEFA—cap. What indications, if any, are there that the UK Government realises that potential, and that it is willing to take the necessary steps and act in the best interests of Scotland for that vitally important national asset?

The First Minister:

Michelle Thomson is absolutely right—there is a huge opportunity for Grangemouth in the transition to net zero. However, it is clear that there are serious regulatory barriers—to which Michelle Thomson spoke—for the owners of Grangemouth in developing opportunities such as sustainable aviation fuel, or SAF.

The company has made it clear that a major barrier to immediate investment—I stress the word “immediate”—in a biorefinery at the site concerns the United Kingdom Government’s proposed SAF mandate and the HEFA cap that Michelle Thomson mentioned. That requires action from the UK Government, and I believe that action should be immediate and urgent. Grangemouth’s hard workers and the wider community cannot be left at the mercy of UK Government inaction.

The Scottish Government wants to secure the best possible future for Grangemouth. The key powers in that area lie, regrettably, at Westminster, so we will continue to push the UK Government to make the necessary changes to ensure that Grangemouth plays a key role in powering Scotland’s drive to net zero—

The Presiding Officer:

Thank you, First Minister.

The First Minister:

—and I hope that all members in the chamber can get behind the request that we have made—

The Presiding Officer:

Briefly, please.

The First Minister:

—to the UK Government to help that transition for Grangemouth and its workers.