Prime Minister Sir Keir Starmer has announced that the newly created public energy company, Great British Energy (GB Energy), will be headquartered in Aberdeen. The move solidifies the city’s position as a central hub in the UK’s shift towards renewable energy, marking a significant milestone in the country’s broader energy strategy.
The announcement, made during Sir Keir’s first Labour Party conference speech as Prime Minister, follows months of lobbying from business and political leaders in north-east Scotland, all of whom advocated for the Granite City to become the firm’s base. Long known for its pivotal role in the oil and gas industry, Aberdeen is now set to lead the next phase of the UK’s energy transformation.
Sir Keir, in his speech, acknowledged the city’s historical significance in energy production. He underscored that the decision to locate GB Energy in Aberdeen was not only about its past but also its role in powering the UK’s future. “The talent and expertise that have driven British energy production for decades remain vital, and it’s only right that Aberdeen continues to be at the centre of our energy future,” he said.
GB Energy, designed to help the UK become more energy-independent, will oversee and invest in renewable energy projects across the country. This includes initiatives focused on offshore wind, carbon capture, and hydrogen technology, all key components of the government’s broader plan to transition towards a cleaner energy grid.
A Boost for Aberdeen’s Energy Sector
Leaders from Aberdeen’s business community have enthusiastically welcomed the decision, seeing it as an endorsement of the city’s expertise and future potential. According to Russell Borthwick, Chief Executive of Aberdeen & Grampian Chamber of Commerce, the move will cement the North-east’s standing as a key global energy hub. He noted that Aberdeen has long been a powerhouse of energy innovation, with a robust supply chain and skilled workforce ready to take on the challenges of the energy transition.
Borthwick also pointed out that Aberdeen is already preparing to lead on key projects, including over 17GW of floating offshore wind projects planned near the city, and major carbon capture initiatives set to create thousands of jobs. However, he stressed that the city’s success in renewable energy will not come at the expense of its traditional oil and gas industry. He emphasised that both industries can coexist, with each playing a crucial role in securing the UK’s energy future.
Borthwick further called on the UK government to use its upcoming Budget to instil greater confidence in the North Sea oil and gas sector, which he sees as essential to ensuring a smooth transition to renewables.
A Strategic Location for Green Investment
Aberdeen’s proximity to several key renewable energy initiatives, including offshore wind farms and carbon capture projects, makes it a logical choice for GB Energy’s headquarters. Jean Morrison, Chair of Aberdeen Renewable Energy Group (AREG), praised the decision, saying that it will help to secure vital investment and create opportunities for local businesses and workers.
Morrison emphasised that Aberdeen’s decades of expertise in oil and gas give it a solid foundation upon which to build its future in renewable energy. She noted that with projects like the ScotWind leasing round and the Aberdeen Hydrogen Hub already in progress, the city is well-positioned to become a centre of innovation in the UK’s green energy transition. However, she cautioned that the shift to renewable energy cannot happen in isolation and will require collaboration across various sectors to ensure that the country as a whole meets its net-zero targets.
Securing Aberdeen’s Place in the Energy Transition
Local government leaders have expressed their satisfaction with the decision. Aberdeen City Council co-leaders Ian Yuill and Christian Allard highlighted Aberdeen’s long-standing role as a magnet for energy investments. They believe that the city’s established reputation in the sector, along with its growing involvement in renewable energy projects, makes it the ideal location for GB Energy’s headquarters.
The council leaders also stressed that housing GB Energy in Aberdeen will not only benefit the city but also enhance the UK’s energy ambitions on a broader scale. They see this move as a crucial step towards making Aberdeen the “Net Zero Capital of Europe.”
Adrian Watson, Chief Executive of Aberdeen Inspired, also welcomed the news, describing the decision as a natural fit for a city that has long been at the cutting edge of energy innovation. He highlighted Aberdeen’s well-earned reputation for skills and expertise in the energy sector and sees the establishment of GB Energy’s headquarters in the city as a significant opportunity to attract further investment. Watson also stressed the importance of locating the headquarters in the city centre, which he believes would send a strong signal that Aberdeen is open for business and poised to lead in the energy transition.
Looking Ahead
GB Energy’s headquarters in Aberdeen will serve as the operational heart of the company as it begins to scale up its efforts in renewable energy production. Juergen Maier CBE, Chair of GB Energy, expressed optimism about the future, stating that Aberdeen will be a key starting point for the company’s operations. He noted that the city’s workforce and energy expertise will be instrumental in helping GB Energy engage with investors, build supply chains, and accelerate the UK’s green energy transition.
As the UK moves towards its ambitious goal of reaching net-zero carbon emissions by 2050, Aberdeen’s role will be crucial in ensuring that the country’s energy system can evolve to meet future demands. With its long history in oil and gas and its growing involvement in renewable energy, the city is uniquely placed to lead the UK’s energy transformation. However, as local leaders have pointed out, maintaining a balanced approach that values both traditional and renewable energy sectors will be essential to ensuring a just and effective transition.
The decision to locate GB Energy in Aberdeen represents a vote of confidence in the city’s future and its ability to contribute meaningfully to the UK’s energy ambitions. With major projects already in motion and a skilled workforce at its disposal, Aberdeen is well-equipped to lead the charge as the UK pushes towards a cleaner, more sustainable energy future.
