The headquarters of the UK government’s GB Energy will be in Aberdeen, reports have suggested.
News outlets including the BBC reported the Granite City will be the headquarters, although the UK government declined to “comment on speculation”.
But the Department for Energy Security and Net Zero (DESNZ) did not deny the claims.
City leaders came out to welcome the reports, including billionaire philanthropist Sir Ian Wood who said the north-east region made an “irresistible” case as the HQ due to its “close proximity to a massive pipeline” of renewable projects.
In a statement the department said: “We do not comment on speculation. Decisions on Great British Energy’s location will be announced in due course.”
The question of where GB Energy will be based has been the subject of heavy speculation after plans to make the UK an energy “superpower” were initially announced in 2022.
Sir Keir Starmer revealed plans to establish a publicly-owned renewable energy company as a key plank of his party’s winning campaign in the general election.
The Labour party has said its headquarters would be in Scotland but the actual location was not specified.
The list of possible cities for GB Energy’s base had recently been narrowed down to Aberdeen, Edinburgh and Glasgow.
There has also been some confusion about what its role will be although Labour has insisted the plan would bring “a huge number” of skilled jobs to the country.
Recently DESNZ started advertising a number of jobs relating to the new government body, including some based in Aberdeen. It is thought smaller satellite offices will be based in other parts of Scotland, possibly Glasgow and Edinburgh.
© DC ThomsonSir Ian said: “We certainly welcome reports that GB Energy is to be headquartered in Aberdeen. The case for locating the company in the north-east of Scotland is irresistible given it is home to the largest cluster of energy supply chain companies in the UK and in close proximity to a massive pipeline of renewable projects spanning offshore wind, green hydrogen and carbon capture and storage.
“Should this extremely positive opportunity be confirmed, it is essential that industry work closely with the UK Government to design GB Energy ensuring it fulfils its stated ambition as an investment vehicle that accelerates the country’s diversification to new and green energies.
“A key part of this process must be ensuring a managed and just transition that protects our existing oil and gas sector which harbours the skills, experience and company base that is so crucial to ensuring this region continues to contribute significantly to the UK’s energy security as well as being a key driver of the race to net zero.”
SNP Westminster leader Stephen Flynn took the so-called speculation as gospel.
He said: “Nobody sensible was seriously suggesting that a new energy body should be based outwith Aberdeen so to have this belated certainty is helpful.
“Now we need to try and understand what this new energy body will actually do, and how it will benefit the people of Scotland given the scale of resources.
“In that context, it’s only reasonable to expect any wealth created from Scotland’s resources to flow directly back to our communities.”
But he added the new organisation had much to remedy particularly in the wake of Labour’s extension of the Energy Profits Levy and the reduction of investment incentives.
Labour’s fiscal policies have been subjected to barrage opposition, including Offshore Energies UK which has estimated these will cost the UK economy £13billion and put 35,000 jobs at risk.
Flynn said: “And ultimately it’s important to be clear that this body being in Aberdeen is no mitigation to the damage that is likely to be caused to investment and jobs in our existing energy sector by Labour’s recently implemented tax regime.”
Chief executive of Aberdeen and Grampian Chamber of Commerce Russell Borthwick responded to the rumours by highlighting his group’s full-throated support for the government agency choosing Aberdeen.
© Supplied by –He said: “Aberdeen has been Europe’s energy capital for half a century – home to energy companies large and small, a thousand supply chain firms, vast renewables potential off our shores and the highly-skilled workforce who will deliver the UK’s transition to net zero.
“Aberdeen and Grampian Chamber of Commerce has led calls for GB Energy to be headquartered here in the Granite City – which will be the epicentre of so much activity over the coming years as we move away from oil and gas to cleaner sources of energy.
“To deliver that shared mission – which must be done in partnership between government, industry, workers and the community at large – an Aberdeen HQ makes sense.
“While we await confirmation from the government, and further detail on the functions and focus of a new publicly-owned energy company, we will continue to campaign for a well-managed transition that protects jobs, delivers energy security in the here and now and guarantees a bright future for our energy industry for decades to come.”
The story comes on a busy day for the UK energy industry after the UK government confirmed the next round of funding for 131 new renewable energy projects.
It is thought Starmer plans to officially announce the firm’s official home in the coming weeks
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