Sir Keir Starmer has confirmed that Great British Energy's headquarters will be located in Aberdeen.

The Prime Minister told delegates the “publicly owned national champion" could "only be based in one place".

The creation of the firm was a key pledge in Labour's manifesto at the general election, and the north east had long been the favourite for the base. 

While it was welcomed by industry and business leaders in the city, they also warned that the UK Government's decision to ramp up the windfall tax on oil and gas could have "profound consequences."

It is still not entirely clear what hosting the HQ means in practice, and how many jobs will be attached, but a number of cities and areas across the country had expressed an interest.

The Department for Energy Security and Net Zero confirmed that Edinburgh and Glasgow will host two smaller sites "to benefit from local skills and expertise."

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In his speech, Sir Keir told the party faithful gathered in Liverpool: "We said GB Energy — our publicly owned national champion, the vehicle that will drive forward our mission on clean energy — we said it belonged in Scotland.

"And it does.

"But the truth is it could only really ever be based in one place in Scotland. 

"So today, I can confirm that the future of British energy will be powered, as it has been for decades by the talent and skills of the working people in the Granite City, with GB Energy based in Aberdeen."

The firm, backed by £8.3 billion of public cash, aims to drive up the number of green projects, including wind and solar and carbon capture.

It is one of the key drivers of Labour’s clean energy mission, to effectively “decarbonise” the UK’s electricity production by 2030. 

The company will “facilitate, encourage and participate in the production, distribution, storage and supply of clean energy” as well as “measures for furthering the transition to clean energy and improving energy efficiency.”

The UK Government said GB Energy would initially be based in government buildings until permanent bases could be found. An interim Chief Executive will also soon be appointed to "take the lead on launching the new company and building its Aberdeen base".

Juergen Maier, the former CEO of Siemens UK, has already been appointed chair. 

He 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,” he added.

The Scottish Government welcomed the news. Gillian Martin, the acting Cabinet Secretary for Net Zero and Energy said: "Aberdeen has a long and proud history of energy innovation and an outstanding skills base, and will be at the heart of Scotland’s just transition to clean energy.

"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.”

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The Scottish Greens said there were still many questions over what exactly GB Energy is going to be.

North east MSP, Maggie Chapman said: "GB Energy should be an organisation that resources the energy sector’s move towards genuine renewable energy, not an excuse for more warm words on oil, gas and nuclear."

Scottish Tory MSP Douglas Lumsden branded GB Energy a "gimmick." 

He said the announcement would do "almost nothing to compensate for the hammer-blow Labour’s policies on oil and gas have already delivered to the north east."

“There’s no explanation of how GB Energy will safeguard the 100,000 jobs supported by Scotland’s existing energy industries – especially when it is an investment vehicle rather than an energy firm," he added.

There was support from the industry for the decision. David Whitehouse, CEO Offshore Energies UK said the city was an "energy powerhouse and home to brilliant British engineering."

"It must and should be part of the UK’s energy future," he added. "The people of this city are rightly proud of their energy heritage and it’s imperative GB Energy helps to safeguard their jobs and build on their world class expertise to benefit the whole UK.  

“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."

Mr Whitehouse said there were still concerns in the sector over recent changes to the windfall tax on oil and gas.

He warned this would have "profound consequences for this sector and its people."

That call was echoed by Aberdeen and Grampian Chamber of Commerce, which has been campaigning for GB Energy.

They said the Prime Minister's announcement was “fantastic news."

Chief executive Russell Borthwick added: “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.”