Sources close to the government have confirmed the news, although an official announcement from the Department for Energy Security and Net Zero is still pending, The Press and Journal reports.

A spokesperson for the department said: “We do not comment on speculation. Decisions on Great British Energy’s location will be announced in due course.”

Sir Ian Wood, chairman of ETZ Ltd, said: “We certainly welcome reports that GB Energy is to be headquartered in Aberdeen.

“The case for locating the company in the north-east of Scotland is irresistible given it is home to the largest cluster of energy supply chain companies in the UK and in close proximity to a massive pipeline of renewable projects spanning offshore wind, green hydrogen and carbon capture and storage.

“Should this extremely positive opportunity be confirmed, it is essential that industry work closely with the UK Government to design GB Energy ensuring it fulfils its stated ambition as an investment vehicle that accelerates the country’s diversification to new and green energies.

“A key part of this process must be ensuring a managed and just transition that protects our existing oil and gas sector which harbours the skills, experience and company base that is so crucial to ensuring this region continues to contribute significantly to the UK’s energy security as well as being a key driver of the race to net zero.”

Smaller offices are said to be planned for other parts of the country and could include Edinburgh and Glasgow.

Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said: “Aberdeen has been Europe’s energy capital for half a century – home to energy companies large and small, a thousand supply chain firms, vast renewables potential off our shores and the highly-skilled workforce who will deliver the UK’s transition to net zero.

“Aberdeen and Grampian Chamber of Commerce has led calls for GB Energy to be headquartered here in the Granite City – which will be the epicentre of so much activity over the coming years as we move away from oil and gas to cleaner sources of energy.

“To deliver that shared mission – which must be done in partnership between government, industry, workers and the community at large – an Aberdeen HQ makes sense.

“While we await confirmation from the government, and further detail on the functions and focus of a new publicly-owned energy company, we will continue to campaign for a well-managed transition that protects jobs, delivers energy security in the here and now and guarantees a bright future for our energy industry for decades to come.”