UK energy minister Michael Shanks MP has marked the start of work on the £9.1 million project in Aberdeen, which has been backed by UK Government, Scottish Government, Scottish Enterprise and industry funding.

Expected to be operational in early Autumn 2025, the newly named ‘ETZ EnergyWorks’ will be the flagship of the Energy Transition Zone (ETZ) Innovation Campus in the Granite City, with the 3,000 square-metre premises providing a mix of industrial and collaboration space alongside advanced manufacturing and entrepreneurial support for firms ready to develop and scale.

ETZ EnergyWorks was founded by ETZ Ltd, bp and Scottish Enterprise, supported by the UK and Scottish Governments, with delivery partners National Manufacturing Institute Scotland (NMIS) and the Net Zero Technology Centre (NZTC).

The UK Government has funded £5.5m towards the project, with £2m from Scottish Enterprise alongside additional Scottish Government funding, and £1.25m from bp.

The energy incubator and scale-up hub will be a ‘one-stop-shop’ for companies working across sectors including offshore wind, hydrogen and battery storage, with the building itself being created with net zero principles at its heart, running on 100% green electricity, partly generated on site via solar panels, and use of sustainable construction materials.

EnergyWorks will be equipped with a workshop operated by NMIS for advanced manufacturing support towards prototype development and commercialising new technology, alongside an array of industrial units for tenants as well as meeting, collaboration and co-working space.

Its offering will include an ecosystem of mentoring and entrepreneurial support from the EnergyWorks project partners, designed to allow tenants to grow and, ultimately, outgrow their space to go out into the local economy.

The facility aims to attract an initial 15 tenants in its first year and generate dozens of green energy jobs annually. EnergyWorks is a key facet of ETZ Ltd’s goal to position North East Scotland as the net zero capital of Europe.

UK energy minister Michael Shanks said: “Our mission to become a clean energy superpower starts with building a world-class supply chain, that will revitalise our industrial heartlands and power homes and businesses with British-made infrastructure.

“Aberdeen is already at the heart of our clean energy transition as the host of Great British Energy’s headquarters. This new government-backed EnergyWorks hub will build on the city’s highly skilled engineering workforce and cement Scotland’s role as a pioneer in renewable technology.”

ETZ Ltd chief executive Maggie McGinlay said: “Supporting innovation and entrepreneurial energy businesses is vital as we position the North East of Scotland as the Net Zero Capital of Europe.

“EnergyWorks will play a crucial role, providing practical support for companies seeking to bring their products to market as they get on with the business of the energy transition.

“A one-stop shop for firms working across the transition, from offshore wind to hydrogen, this hub will deliver a blend of support for innovation, entrepreneurship and growth for the next generation of tech pioneers right here in the North East – the work starts now.”

Scottish Enterprise chief executive Adrian Gillespie said: “It’s fantastic to see construction starting at EnergyWorks, set to become a critical location for helping entrepreneurs across the North East and Scotland access the support and funding they need to kick start and accelerate growth.

“Helping businesses identify opportunities to be part of Scotland’s energy transition future is one of our missions at Scottish Enterprise as we work to accelerate economic transformation.

“We look forward to working alongside our partners to support energy entrepreneurs at EnergyWorks.”

Dr Oliver Taylor, vice president regional corporates and partnerships, bp UK & EU, said: “As the energy transition progresses, and new exciting projects move from planning to reality - like the bp and Aberdeen City Council green hydrogen hub - it’s vital we support our supply chain to transition too.

“EnergyWorks can be an important catalyst for this effort and bp is proud to be backing this project and see it starting to take shape.”

NMIS chief executive officer Chris Courtney said: “It is vitally important we maximise the supply chain opportunities from the energy transition, particularly in Aberdeen with its globally recognised skill base and heritage. We are delighted to join our partners to support entrepreneurs, allowing them to rapidly scale their businesses.

“We will help entrepreneurs bring transformative products and services to market quickly by developing and de-risking new technologies they need, developing the future skills they need and connecting them to the network of innovation in Aberdeen and across the UK.”

Net Zero Technology Centre chief executive Myrtle Dawes said: “Through the Net Zero Technology Centre’s TechX start-up accelerator programme, we’ve had the pleasure of nurturing the North East’s community of cleantech entrepreneurs. It’s fantastic to see government and industry investing in a dedicated facility where these bright minds can collaborate and drive forward the development of technologies critical to the energy transition.

“This facility and its tenants are key to realising Aberdeen’s potential as Europe’s clean energy capital. We’re committed to supporting the next generation of innovators by providing them with expertise and mentorship through ETZ EnergyWorks, combined with the funding and exposure they can gain through TechX, which has accelerated 69 start-ups and counting.”