Prime Minister Sir Keir Starmer announced to the annual Labour party conference that the new state-owned clean energy firm will be based in Aberdeen.
Basing Great British (GB) Energy in Scotland was one of the main pledges to Scottish voters during the general election campaign, which has now finally been confirmed.
GB Energy aims to help fund new and existing clean technology, alongside small and medium renewable energy projects. The company is also designed to help Britain achieve a fully decarbonised power system by 2030.
Ed Miliband, who is the UK’s energy security and net zero secretary, has described GB Energy as “a new national champion, allowing us to reap the benefits of Britain’s abundant natural resources”.
The government has promised to invest £8.3 billion of new money into the company, over the course of this parliament; expected to be raised through a windfall tax on oil and gas firms. They have also pledged that it will bring more jobs and boost the economy.
The government has published five key functions for the company:
- Project development, to aid projects and speed up their production.
- Project investment, to help promote investment in energy projects alongside the private sector.
- Local power plan, which aims to work with local authorities to support local energy generation projects.
- Supply chains, aims build supply chains all over the UK, with the aim to boost energy independence and create jobs.
- Great British Nuclear, aims to explore how energy and nuclear work and function together.
For Scotland, and in particular Aberdeen, this has created speculation aboutr what this means for the city, which was expected to suffer from the Labour policy on oil and gas licences. The SNP and Conservatives have already criticised Labour, claiming 100,000 jobs would be at threat.
However, the announcement did not confirm how many jobs would be created by GB Energy.
Keir Starmer stated “the future of British energy will be powered as it has been for decades, by the talent and skills of the working people in the Granite City with GB Energy based in Aberdeen”. However, this doesn’t confirm any numbers or evidence of actual job prospects.
Furthermore, debate has now turned to what this will actually mean for jobs and infrastructure in the city, and how the transition from oil and gas to renewable energy will be executed as smoothly as possible.
GB Energy will initially be located in government buildings, until permanent bases are established. It has also been confirmed that two sites will eventually open in Edinburgh and Glasgow once GB Energy is fully functioning.
Labour have also faced criticism, particularly the leader of Scottish Labour, Anas Sarware, r for being unable to confirm when this project will lead to energy bills being reduced.
Scottish Green MSP, Maggie Chapman, said that the project raises more questions than it does answers. She fears it will become an ‘investors playpen’, rather than a genuine force driving renewable energy projects.
She also highlighted the effect moving to renewable energy would have on employment for many in Aberdeen, stating that an energy transition without justice for workers and affected communities is the last thing the city needs.
The Aberdeen and Grampian Chamber of Commerce chief executive Russell Borthwick expressed his optimism on X shortly after, tweeting that this move will secure the north-east’s status as a global energy capital for many decades.
