It has been confirmed that Aberdeen will be the headquarters for Great British Energy, the UK government’s planned state-backed power company.

The planned company will not supply electricity directly to households but instead plans to develop, invest in and own renewable energy projects.

UK Prime Minister Keir Starmer told delegates at the Labour Party’s annual conference in Liverpool: “We said GB Energy, our publicly-owned national champion, the vehicle that will drive forward our mission on clean energy, belonged in Scotland. And it does.”

The Westminster government said the planned company will draw on Aberdeen’s “world-leading engineering expertise” to kickstart a UK-wide clean energy revolution.

Offshore Energies UK (OEUK) CEO David Whitehouse said: “Where GB Energy is located is important but what really matters is what is does.

“Success will be built on partnerships with industry unlocking the private sector investment needed to achieve the homegrown energy transition and economic growth we all want.

“This means listening to expert people across our sector, backing our supply chains and safeguarding the jobs of thousands of skilled workers across the UK.

“But I remain concerned the new government’s tax changes will have profound consequences for this sector and its people. The new government committed to safeguarding jobs in its manifesto and must listen to those working in the sector.

“Today’s announcement is welcomed, but it will do little to alleviate the very real concerns of the impact the government’s tax proposals will have on thousands of jobs and billions of pounds in future economic value.

“I am asking the government to choose a homegrown energy transition that makes the most of our people and businesses. The alternative is importing ever more energy, skills and infrastructure and subtracting value from our economy.”

The UK government said: “As the location of the new headquarters, Aberdeen will be at the heart of the company’s plans to scale up clean homegrown power to boost energy independence, create skilled jobs across the UK and to support economic growth.”

The government said two additional sites will open in Edinburgh and Glasgow once Great British Energy is up and running.

“The company will be initially located in government buildings across the cities, while permanent bases are established,” said the government.

“This marks the next step to kickstart Great British Energy, as part of its mission to become a clean energy superpower.

“An interim Chief Executive will soon to be appointed to take the lead on launching the new company and building its Aberdeen base – along with the start-up Chair Juergen Maier, former CEO of Siemens UK.

“Within the first weeks of the new government, Energy Secretary Ed Miliband took immediate action to introduce the Great British Energy Bill to Parliament and – along with the Prime Minister – confirm a new partnership with The Crown Estate, to help accelerate new offshore wind farms.

“The company – owned by the British people, for the British people – will attract private investment in the UK’s clean homegrown power, backed by £8.3 billion in government funding over this Parliament.

“The move forms part of the government’s plans to support clean energy in the North Sea, ensuring Aberdeen continues to thrive as Scotland’s clean energy capital.

“The government recently announced the biggest ever investment in offshore wind and continues to progress technologies like carbon capture and storage and hydrogen – as well as ensuring that oil and gas is used for decades to come as part of a fair and balanced transition away from fossil fuels.”

OEUK said listening to industry’s experts and building partnerships will be key to determining GB Energy’s success.

“The UK’s transition to cleaner energy is not only the biggest engineering project the UK has seen since the Second World War,” said OEUK.

“It is also the biggest financial undertaking.

“The government’s Office for Budgetary Responsibility (OBR) says net zero will cost the UK £1.4 trillion, and that the lion’s share must come from business.

“The new government now needs partnerships with industry to put plans into action, unlock investment and kickstart economic growth.

“While welcoming the announcement, OEUK reinforced its continued concerns over plans by the UK government to increase and extend the Energy Profits Levy.

“OEUK and its members work closely with policymakers of all parties to champion the UK’s energy security and low carbon future.”

The Scottish Government’s acting Energy Secretary Gillian Martin welcomed the announcement, adding: “We will now press the UK Government to make sure that this announcement brings real decision-making to Aberdeen and adds value to the great work already taking place in the energy transition.

“More widely, we are working closely with the UK Government as it establishes the GBE team and we would encourage them to accelerate the establishment of the new organisation so that investment in projects in Scotland can be taken forward without delay.”

GB Energy chair Juergen Maier said the headquarters will act as a “starting point” for the newly-formed firm.

“We will use this base to rapidly scale up this publicly owned, operationally independent company and start to engage with investors and communities and build supply chains across the UK,” said Maier.

Aberdeen and Grampian Chamber of Commerce hailed the “fantastic news” which it said will “secure the north-east’s status as a global energy capital for many decades to come.”

Its chief executive Russell Borthwick said: “However, we do not need to kill off one industry to grow another — in fact, the opposite is true, as one cannot exist without the other.

“We therefore urge the UK Government to use next month’s Budget to restore confidence in the North Sea to protect the jobs, supply chain and energy production we need to ensure a just transition.”

Stuart Payne, chief executive of the North Sea Transition Authority (NSTA), said: “The city was at the absolute heart of the UK’s energy story for the last 60 years, and can do the same for the next 60 – the energy transition will be accelerated and enabled by a world class workforce, a passion for tackling the hardest technical challenges, and a very warm welcome awaits our new colleagues.”

Mark Brown, partner at accountants MHA in Aberdeen, said: “Based on daily discussion with our clients, we see some positive sentiment towards this, however, we simply need the UK government to communicate its policy and fiscal approach with the sector.

“This should become apparent over the next three months and will allow the sector to meaningfully budget and decide which projects – short-term oil & gas versus renewable opportunities – should attract their investment capital and resource.

“It remains to be seen if GB Energy in Aberdeen will lead to the retention of the skilled energy workers in the area.

“That will largely depend on how much of the £8.3bn investment budget expected to be raised over the next five years (from the Energy Levy) is to be invested and how quickly it translates into renewables job opportunities locally.

“We await Labour’s budget on October 30 that will provide further information on how the sector is to be taxed as well as more detail on Labour’s Energy Policy.”