The UK Government has refused to confirm reports Great British Energy will be headquartered in Aberdeen.
A spokesman for the Department for Energy Security and Net Zero said "no decision had been made".
However, BBC Scotland has reported the UK Government-backed firm had been confirmed for an Aberdeen base.
The UK Government's GB Energy plans would not supply energy to homes but would fund new and existing clean technologies.
A statement from the UK Government said: "We do not comment on speculation. Decisions on Great British Energy's location will be announced in due course."
While yet to be confirmed, senior politicians have welcomed the reports.
Other Scottish cities, such as Glasgow and Edinburgh, were under consideration.
SNP Westminster leader Stephen Flynn said: "Nobody sensible was seriously suggesting that a new energy body should be based outwith Aberdeen so to have this belated certainty is helpful.
"Now we need to try and understand what this new energy body will actually do, and how it will benefit the people of Scotland given the scale of our resources.
"In that context, it’s only reasonable to expect any wealth created from Scotland’s resources to flow directly back to our communities.
"And, ultimately, it’s important to be clear that this body being in Aberdeen is no mitigation to the damage that is likely to be caused to investment and jobs in our existing energy sector by Labour’s recently implemented tax regime.”
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GB Energy formed part of Labour's pre-general election pledge, with Prime Minister Sir Keir Starmer confirming the development will be based in Scotland.
However, the exact location has not been announced by the UK Government.
The legislation for GB Energy was introduced at Westminster in July, with ministers saying it would secure Scottish industries like offshore wind and hydrogen.
Rosie Hampton, a just transition campaigner at Friends of the Earth Scotland, said it mattered more what GB Energy does, not where it is based.
However, she said: "In choosing Aberdeen, this could be an opportunity to keep the benefits of the energy transition in the North East.
"If GB Energy enhances the role of public ownership and redirects revenue into the region, that could be a marked departure from how greedy oil giants have extracted profits for decades without much redistributed benefit for communities."
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