Plans to headquarter GB Energy in Aberdeen welcomed

KEIR STARMER has announced that the UK’s state-owned energy company GB Energy will be based in Aberdeen, Scotland, supporting the city’s transition from oil capital to energy transition powerhouse.

The UK prime minister said at the Labour Party Conference yesterday that the company “belonged in Scotland” and will be run by workers and professionals based in the region.

He said: “This is how the work of change happens. A decisive mission-led government, moving our country forward, step by step. Focused on a long-term plan.”

Transition of reputation

Aberdeen has long been hailed as the “oil and gas capital of Europe” as it contains one of the main ports to the North Sea, Port of Aberdeen.

However, as oil and gas basins in the North Sea continue to decline, so has demand, and Aberdeen has set forward plans to rebrand as a world leader in renewable energy production and distribution.

Various initiatives have been launched by the public and private sector in the UK to establish renewable energy projects in the region, including hydrogen and offshore wind schemes.

The private sector-led Energy Transition Zone (ETZ) project involves a 250-hectare site connected to the North Sea near Port of Aberdeen dedicated to developing technology in offshore renewables, hydrogen, and carbon capture.

Councillors Ian Yuill and Christian Allard from Aberdeen City Council said in a statement: “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.”

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Industry welcome

Leaders and organisations in the green energy sector have welcomed the UK government’s decision and emphasised its benefit for the local workforce.

Russell Borthwick, chief executive at Aberdeen & Grampian Chamber of Commerce, said: “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 17 GW 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.

Jean Morrison, chair of Aberdeen Renewable Energy Group (AREG), said: “With increasing support being awarded to northeast renewable energy projects, many of which involve AREG members, Aberdeen can enhance its position as a supply chain hub and become a true energy transition powerhouse.”