Aberdeen makes an "irresistible" case to house Great British Energy's headquarters, the former chief executive of John Wood Group PLC (LSE:WG.) has said.
Following reports the state-backed body would be set up at the heart of a large proportion of the UK’s oil, gas and offshore wind industries, Ian Wood hailed the news given the city's "close proximity to a massive pipeline" of renewable projects.
"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," Wood added.
He warned GB Energy's work to aid the UK's energy transition needed to "protect" the oil and gas sector though, noting the region housed companies and jobs that were "crucial".
BBC News reported on Tuesday that Prime Minister Keir Starmer was set to officially unveil the public energy company’s home in the coming weeks.
Britain's energy department subsequently did not deny the move, noting in a statement that an announcement would be made in "due course".
Championed by Britain’s new Labour government during its election campaign, the body is also reportedly to operate from smaller sites in Edinburgh and Glasgow.
This follows previous Labour promises that GB Energy would be based in and bring a “huge number” of jobs to Scotland, though where exactly this would be is yet to be confirmed.
GB Energy will aid funding of new and existing clean energy projects, rather than directly supplying power to homes.
Funding for the company is set to come from an inflated windfall tax on North Sea oil and gas firms, which Labour has previously said would raise £8.3 billion over the next five years, but has faced backlash and warnings from the industry over future investment.
Aberdeen and Grampian Chamber of Commerce chief executive Russell Borthwick reiterated calls for jobs to be protected in the oil and gas sector on news of GB Energy's home.
"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," he said.
“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 [and] delivers energy security in the here and now."