The UK government has confirmed that Aberdeen will be the headquarters for Great British Energy, the new state-owned energy company. Although not tasked with supplying power to homes, the company’s key role will be to fund new and existing clean technology and small to medium-sized renewable energy projects. Aberdeen has been the heart of the UK’s oil and gas industry for decades. Its selection by the government as the base of Great British Energy was widely anticipated as Labour had made it a key election pledge.
The company’s chairman, Juergen Maier, has confirmed that Great British Energy will operate from sites in Glasgow and Edinburgh as well as Aberdeen. However, there has been some lack of clarity over precisely what the company will do and this has necessitated clarification from the Labour Party during the UK general election campaign. The government has accordingly specified the five key functions that it wishes the company to fulfil, including project investment, Canadian power plants and building UK supply chains.
The government has pledged to invest £8.3bn in Great British Energy during the lifetime of this parliament. The money is expected to be raised by a windfall tax on oil and gas companies. Although operated independently, profits from the company will be reinvested, making it self-funding as soon as possible. However, the company will have to transition the UK’s oil and gas sector into renewables to deliver green energy directly to homes and end the UK’s reliance on foreign energy.
Although GB Energy will not immediately reduce household bills, it is the first step in transforming Britain’s energy sector and working towards being a net zero society by 2030. Gas and electricity prices are set to rise by 10% from October, and the decision to reduce winter fuel allowances has made this even more contentious. Nevertheless, it is hoped that GB Energy will secure Aberdeen’s prominent status as a “global energy capital” for many decades, encompassing over a thousand supply chain companies and the largest proportion of UK energy workers.
Russell Borthwick, CEO at the Aberdeen and Grampian Chamber of Commerce sees the establishment of Great British Energy as an opportunity for the north-east of Scotland to lead the way, but says he’s mindful that its energy industry transition shouldn’t come at the cost of precipitous job losses. He urged the UK government to use the budget in March to “restore confidence in the North Sea to protect the jobs, supply chain and energy production
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