As the location of the new headquarters, Aberdeen will be at the heart of the company’s plans to scale up clean homegrown power to boost energy independence, create skilled jobs across the UK and to support economic growth.

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 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.

Energy secretary Ed Miliband has introduced the Great British Energy Bill to Parliament and – along with the Prime Minister – confirmed a new partnership with The Crown Estate, to help accelerate new offshore wind farms. The company will attract private investment in the UK’s clean homegrown power, backed by £8.3 billion in government funding over this Parliament.

Mark Brown, partner with MHA in Aberdeen, said: “This announcement is something to be welcomed for Aberdeen. It cements the city’s drive to be at the heart of the UK renewable sector. 

“Based on daily discussion with our clients, we see some positive sentiment towards this, however, we simply need the UK government to communicate its policy and fiscal approach with the sector. This should become apparent over the next three months and will allow the sector to meaningfully budget and decide which projects – short-term oil & gas versus renewable opportunities – should attract their investment capital and resource. 

“It remains to be seen if GB Energy in Aberdeen will lead to the retention of the skilled energy workers in the area. That will largely depend on how much of the £8.3bn investment budget expected to be raised over the next five years (from the Energy Levy) is to be invested and how quickly it translates into renewables job opportunities locally.  

“We await Labour’s budget on October 30 that will provide further information on how the sector is to be taxed as well as more detail on Labour’s Energy Policy.” 

Aberdeen City Council co-leaders, councillors 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.”

Sir Ian Wood, chairman of ETZ Ltd, said: “It is hugely welcome that GB Energy is to be headquartered in Aberdeen.

“The case for locating the company in the North East of Scotland, as the Prime Minister said, 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.

“It is now essential that industry works 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 green energies. ETZ Ltd has a proven track record of working positively with this region’s supply chain as well as developers of the vast array of transformational renewable projects on our doorstep – we stand ready to play our part in making GB Energy a success.”

Dr Liz Cameron CBE, chief executive of the Scottish Chambers of Commerce, said: “We welcome the confirmation Great British Energy will be located in Aberdeen, boosting its status as the global energy capital and restoring some much-needed confidence in the North Sea.

“The benefits will be felt across the North East and Scotland and will hopefully secure jobs and investment as the oil and gas sector makes a just transition to net zero.

“It is a long overdue commitment amidst the lack of clarity to date around Labour’s green energy strategy and we hope it signals a positive approach to protecting the industry and the thousands of people it employs.

“The North East is also home to specialist infrastructure, hundreds of energy companies – both onshore and offshore – and a highly skilled workforce that can be at the heart of that transition. Today’s confirmation from the Prime Minister puts the foundations in place for a balanced strategy for growth and sustainability.”