Prime Minister Keir Starmer has confirmed that Great British Energy will be headquartered in Scotland and will back energy generation projects in the UK.

Energy secretary Ed Miliband then narrowed the options to Aberdeen, Edinburgh and Glasgow. However, Dundee has also staked its claim to host the new company.

Last week, the UK Government published its founding statement for GB Energy, announcing its new chair and a partnership with the Crown Estate. The company will be backed with £8.3 billion of new money over this Parliament to own and invest in clean power projects in regions across the UK.

Prime Minister Keir Starmer said: “My government is laser focused on delivering change, to make people better off.

“This innovative partnership between Great British Energy and the Crown Estate is an important step toward our mission for clean energy by 2030, and bringing down energy bills for good.

“This agreement will drive up to £60 billion in investment into the sector, turbocharging our country toward energy security, the next generation of skilled jobs, and lowering bills for families and business.

“My mission led government is rolling up our sleeves to deliver for Britain.”

Energy security and net zero secretary Ed Miliband said: “Great British Energy comes from a simple idea - that the British people should own and benefit from our natural resources. Investing in clean power is the route to end the UK’s energy insecurity, and Great British Energy will be essential in this mission.

“The agreement with The Crown Estate will lead to more investment, cleaner power, more energy security, and is a statement of intent that it will be a permanent and transformative institution for our country.”

Aberdeen said it is confident in its case with industry figures and the public at large aligned behind the campaign to headquarter the new flagship public energy firm in the city.

Over 900 leading businesspeople and major companies – including Sir Ian Wood, Martin Gilbert, FTSE-listed Wood Group and global financiers SCF Partners and Piper Sandler – recently signed an open letter to Keir Starmer backing Aberdeen’s case.

Scotland-wide opinion polling undertaken during the recent General Election campaign showed that Aberdeen is the preferred location for GB Energy’s headquarters among the public at large.

Aberdeen & Grampian Chamber of Commerce chief executive, Russell Borthwick, said: “We are encouraged at the pace with which the new UK government is taking forward its plans for Great British Energy. There is a huge opportunity ahead: for industry, for government, for the energy workforce and in terms of our transition to a greener economy.

“Aberdeen has been Europe’s major global energy hub for half a century. We are home to over a thousand energy supply chain companies and the lion’s share of energy workers who stand ready to deliver the UK’s transition to net zero. Over 17GW of floating offshore wind projects will be deployed within 100 nautical miles of our city.

“With the people, skills, strategic infrastructure and future pipeline of projects already in place, the North East of Scotland is ready to lead the way.

“Quite clearly there is no better location for GB Energy than Aberdeen. People and businesses right across Scotland already understand why that is the case – and we’re confident that government will find that case similarly compelling.”

Edinburgh and Glasgow will also have strong claims to host the GB Energy HQ.

Edinburgh is home to most of Scotland’s major financial institutions as well as key energy stakeholders including the Scottish government and Crown Estate Scotland.

Meanwhile, Glasgow hosts the headquarters of Scottish Power as well as large offices for major banks including Barclays and JP Morgan.

A senior councillor said he was writing to the UK Government to put forward Dundee’s case for hosting the firm.

Convener of fair work, economic growth & infrastructure Steven Rome said there were compelling arguments for bringing it to Dundee.

He is writing to Ed Miliband to set out the city’s “impressive” proposition.

Councillor Rome said: “Dundee is already at the heart of the country’s transition to clean energy.

“There’s the renewables hub at the Port of Dundee and the great work going on at MSIP to innovate in sustainable mobility and create the workforce we’ll need in the future, to give just a couple of examples.

“We’ve got impressive strengths across academia, business and climate leadership which would make us the idea home for GB Energy.”

Depute convener Councillor Siobhan Tolland added: “Dundee currently has less than its fair share of UK Government jobs, and we need strategic support to grow our economy for the future.

“A lasting commitment like this would complement and consolidate the successful employability work that has already happened to date helping people into employment and retaining wealth within the city.”