Aberdeen has officially been named the new home of Great British Energy, drawing on the city’s world-leading engineering expertise to kickstart a UK-wide clean energy revolution.
Following a sustained campaign by Aberdeen & Grampian Chamber of Commerce, the Granite City will be at the heart of the company’s plans to scale up clean homegrown power and create new jobs in the green economy.
Prime Minister Keir Starmer made the announcement in his conference speech, saying "it could only really ever be based in one place".
The company - which will be 100% owned by the British state - will attract private investment in the UK’s clean homegrown power, backed by £8.3billion in government funding over this Parliament.
Two additional sites will open in Edinburgh and Glasgow, once Great British Energy is up and running, to benefit from local skills and expertise. The company will be initially located in government buildings across the cities, while permanent bases are established.
An interim chief executive will soon to be appointed to take the lead on launching the new company and building its Aberdeen base - along with the start-up Chair Juergen Maier, former CEO of Siemens UK.
Sir Keir told conference delegates: “We said, GB Energy, our publicly owned national champion, the vehicle will drive forward our mission on clean energy, we said it belonged in Scotland, and it does.
“But the truth is, it could only really ever be based in one place in Scotland. So today, I can confirm that the future of British energy will be powered as it has been for decades, by the talent and skills of the working people in the granite city, with GB Energy based in Aberdeen.”
Reaction
The news follows a substantial lobbying effort by Aberdeen & Grampian Chamber of Commerce, alongside public affairs and marketing agency True North and a range of regional partners.
Russell Borthwick, chief executive at Aberdeen & Grampian Chamber of Commerce, said: “This is fantastic news for Aberdeen and will secure the North-east’s status as a global energy capital for many decades to come.
“We are home to over a thousand energy supply chain companies and the lion’s share of energy workers who stand ready to deliver the UK’s transition to net zero.
“Over 17GW of floating offshore wind projects will be deployed within 100 nautical miles of our city and 20,000 jobs are waiting to be created in Carbon Capture off the Buchan coast.
“With the people, skills, strategic infrastructure and future pipeline of projects already in place, the North-east of Scotland is ready to lead the way.
“However, we do not need to kill off one industry to grow another – in fact, the opposite is true, as one cannot exist without the other.
“We therefore urge the UK Government to use next month’s Budget to restore confidence in the North Sea to protect the jobs, supply chain and energy production we need to ensure a just transition.”
In a joint statement, Aberdeen City Council co-leaders Ian Yuill and Christian Allard said: “We are delighted that GB Energy is going to be based in Aberdeen. As the energy capital of Europe, Aberdeen is best placed in Scotland to be home to the UK Government’s GB Energy headquarters.
"Aberdeen has been a magnet for energy investments for decades and the city has already established itself as a renewables hub with businesses investing in offshore wind and green hydrogen. This will help secure future investments in the sector and will help confirm Aberdeen as the Net Zero Capital of Europe. Aberdeen's entrepreneurial and innovative energy businesses have the people, the experience, the skills, and the business know-how in leading the energy transition worldwide."
David Whitehouse, CEO at Offshore Energies UK added: “Aberdeen is an energy powerhouse and home to brilliant British
engineering. It must and should be part of the UK’s energy future. The people
of this city are rightly proud of their energy heritage and it’s imperative GB
Energy helps to safeguard their jobs and build on their world class expertise
to benefit the whole UK.
“However, I remain concerned the new government’s
tax changes will have profound consequences for this sector and its people. The
new government committed to safeguarding jobs in its manifesto and must listen
to those working in the sector. Today’s announcement is welcomed, but it will
do little to alleviate the very real concerns of the impact the government’s
tax proposals will have on thousands of jobs and billions of pounds in future
economic value."