GB Energy will establish its headquarters in Aberdeen, according to information obtained by BBC Scotland. This new energy company, backed by the UK government, will focus on funding both new and existing clean technology, as well as small and medium-sized renewable energy projects.
Although GB Energy will not directly supply power to homes, it will play a significant role in the renewable energy sector.In addition to its main office in Aberdeen, there are plans for smaller satellite offices in other parts of Scotland, potentially including cities like Glasgow and Edinburgh. Prime Minister Sir Keir Starmer is expected to make an official announcement regarding the company’s headquarters soon.
Subscribe to our daily newsletter
Why? Free to subscribe, no paywall, daily business news digest.
Aberdeen is already a hub for the UK’s oil, gas, and offshore wind industries. Establishing GB Energy in Scotland was a key election promise by the Labour party, although the exact location was initially unspecified and not mentioned in the King’s Speech at the beginning of Sir Keir’s administration. Labour had promised that the initiative would create “a huge number” of skilled jobs in the country.GB Energy’s investment focus will include wind and solar projects, as well as emerging technologies such as floating offshore windfarms, hydrogen, carbon capture, and energy storage.
During the election campaign, Labour clarified that while GB Energy would generate power, it would not act as a retailer. The company is expected to be funded through an extended windfall tax on oil and gas companies, which Labour estimates will generate approximately £8.3 billion over five years.
Labour has stated it will not issue new oil and gas licenses but will honor existing ones.The Scottish government had previously committed to creating a publicly-owned, non-profit company to sell gas and electricity by 2021, but this plan was later abandoned.
First Minister John Swinney expressed concerns that the establishment of GB Energy would negatively impact the Scottish economy, arguing it would not lower household bills and could reduce employment in northeast Scotland.
Speaking to BBC, Stephen Flynn, the SNP’s Westminster leader, welcomed the confirmation of the headquarters’ location but shared concerns about its effect on local jobs.
The Scottish Conservatives also expressed concerns to the BBC about job impacts, accusing Labour of “wanting to turn off the North Sea.”
Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, commented to BBC, “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. 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.”
