Starmer Confirms Aberdeen As Headquarters For Great British Energy

Prime Minister Sir Keir Starmer has officially confirmed that the headquarters (HQ) of the newly established Great British Energy (GBE) will be located in Aberdeen, with additional satellite sites in Edinburgh and Glasgow.

The announcement, which was made following the King’s Speech on 17 July, positions GBE as a public energy company “owned by and for British people,” aiming to promote energy independence and ensure taxpayers benefit from domestically produced energy.

The formation of GBE officially began with the introduction of the Great British Energy Bill to the House of Commons on 25 July. The Bill passed a second reading earlier this month, with 348 MPs voting in favour and 95 against, securing a majority of 253.

The Department for Energy Security and Net Zero (DESNZ) selected Aberdeen as the location for GBE’s HQ due to the city’s world-leading engineering expertise, which will help drive a clean energy revolution across the UK.

Once operational, the additional sites in Edinburgh and Glasgow will benefit from local skills and knowledge. Initially, GBE will operate from government buildings in these cities until permanent offices are established.

An interim CEO will soon be appointed to lead the new energy company, alongside Jürgen Maier, former CEO of Siemens UK, who will serve as the start-up chair.

John Underhill, director of the University of Aberdeen’s Centre for Energy Transition, hailed the decision to establish GBE’s HQ in Aberdeen as “fantastic news for the region.” He emphasised Aberdeen’s history as Europe’s energy capital and the city’s readiness to support GBE’s mission to accelerate the transition to clean, sustainable energy.

Aberdeen’s H2 Aberdeen initiative is driving the growth of a hydrogen economy in North East Scotland, redeploying oil and gas expertise into new clean energy sectors.

As part of the vision, the Aberdeen Hydrogen Hub, a scalable green hydrogen production, storage, and distribution facility, is being developed through a joint venture between BP and Aberdeen City Council.

The Port of Aberdeen is also working on a £4 million shore power project, aiming to supply clean electricity to vessels docked at its berths, as part of its ambition to become the UK’s first net-zero port by 2040.

Other significant projects include the development of the 400MW Green Volt floating offshore windfarm, situated 75km off the Aberdeenshire coast, and the Kincardine offshore wind farm, the world’s largest floating wind farm when it was completed in 2021.

Additionally, TotalEnergies has launched a pilot project to power its Culzean oil and gas rig using 20% of energy from a 3MW floating offshore wind turbine.

The establishment of GBE is set to play a critical role in advancing the UK’s clean energy agenda. In July, the government announced that GBE would partner with the Crown Estate to build more offshore wind farms and develop carbon capture utilisation and storage (CCUS) technology.

A report released by RenewableUK earlier this year highlighted some of the challenges GBE will face in integrating with Great British Nuclear and the wider mission to decarbonise the UK’s energy sector.

RenewableUK, in collaboration with the Crown Estate, has also laid out a roadmap for tripling the UK’s offshore wind manufacturing capacity, with the potential to boost the economy by £25 billion by 2035.

With Aberdeen positioned as the hub of GBE’s operations, the city’s expertise in energy transition and renewable technologies will be instrumental in driving the UK’s clean energy revolution forward.

About GBE:

Great British Energy (GBE) is designed to be a publicly owned energy company aimed at promoting the UK’s energy independence and ensuring that the benefits of domestic energy production flow back to British taxpayers. Here’s how GBE is expected to function:

1. Ownership and Purpose

• GBE will be owned by the public and is envisioned as a strategic player in the UK’s energy sector. It is set to be “owned by and for the British people,” meaning that profits from the energy produced will not go to private shareholders but will be reinvested in public services or returned to taxpayers.
• The company aims to secure energy independence, reducing reliance on imported energy and fossil fuels by investing heavily in renewable and clean energy projects.

2. Energy Generation Focus

• Renewable Energy: GBE will concentrate on expanding the UK’s renewable energy capacity. This includes offshore wind farms, solar energy, hydrogen production, and possibly carbon capture and storage (CCUS) technologies.
• Partnership with Crown Estate: One of GBE’s first tasks will be to partner with the Crown Estate to build more offshore wind farms. The Crown Estate manages much of the UK’s coastline, including areas for offshore wind projects, so this partnership will help GBE scale up renewable energy production quickly.

3. Revenue Generation and Reinvestment

• The energy produced by GBE will be sold, generating revenue for the company. The profits will be used to reinvest in further energy projects, infrastructure, and technology development to continue driving the UK’s transition to clean energy.
• This model could allow for long-term revenue streams, potentially helping to fund public services, pay down public debt, or invest in further green initiatives.

4. Energy Market Influence

• Driving Innovation and Competition: GBE’s public ownership and focus on renewable energy could help increase competition in the energy market by offering lower-cost, clean energy alternatives. This may put pressure on private energy companies to reduce costs and invest more in renewables.
• Stabilising Energy Prices: By producing more home-grown energy, GBE could help stabilise energy prices, especially in the face of global energy market volatility. More domestic production would reduce dependence on foreign imports, offering protection from supply chain disruptions.

5. Role in the UK’s Net-Zero Goals

• GBE is part of the UK government’s broader net-zero strategy. It will actively work towards decarbonising the energy grid and supporting the UK’s commitment to achieving net-zero carbon emissions by 2050.
• The company is expected to invest heavily in offshore wind, solar power, and other green technologies, accelerating the energy transition and helping the UK phase out fossil fuels.

6. Economic and Job Creation Impact

• The establishment of GBE is expected to stimulate job creation, particularly in the renewable energy sector. By building new wind farms, solar parks, and hydrogen production facilities, GBE will create jobs in construction, engineering, and research.
• It will also foster regional economic growth, particularly in areas like Aberdeen, which has long been a hub for the UK’s energy sector and is transitioning from oil and gas to renewable energy industries.

7. Public Accountability and Transparency

• As a publicly owned entity, GBE will be subject to greater transparency and public accountability compared to private energy companies. Its financial operations, investments, and profits will be scrutinised to ensure they serve public interests.

8. Infrastructure and Investment

• GBE will require significant investment in infrastructure to build new energy projects. This will likely involve partnerships with private sector companies, especially in developing new technologies like offshore wind, hydrogen production, and battery storage.