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Could Labour’s GB Energy be based in Fife?

Aberdeen has been touted as the natural home for GB Energy - but does Fife have a chance given its own energy credentials?

Could Fife be a natural home for GB Energy? Image: DC Thomson.
Could Fife be a natural home for GB Energy? Image: DC Thomson.

Sir Keir Starmer is expected to get the ball rolling on creating Labour’s new publicly owned GB Energy firm when he makes his King’s Speech today.

The prime minister has refused to commit when asked where exactly the company will be based – but has said it will be headquartered in Scotland.

Aberdeen has been touted as a natural home for the firm given the city’s status as the UK energy industry’s central hub.

But could Fife be in with a shot given the Kingdom’s own strong energy credentials and proximity to the North Sea?

‘Definite contender’

Glenrothes Labour Councillor Altany Craik, who is the council’s finance spokesperson, sees no reason as to why the Kingdom shouldn’t be in the mix.

He says Fife has “a lot of expertise in energy”.

The state-owned firm will not directly generate energy, and will instead be used as a vehicle for the government to invest in private sector renewables projects.

Labour councillor Altany Craik was forced to stand down as a candidate.
Labour councillor Altany Craik. Image: Kenny Smith/DC Thomson.

Conveniently, Fife forms part of the new low-tax Forth Ports green freeport initiative, approved by the UK Government last year.

As part of that winning bid, sites in Rosyth and Burntisland will be used to construct key components for offshore wind farms.

A Forth Ports spokesperson said: “We welcome the new UK Government’s focus on growing the green economy and wherever GB Energy is based, we will work with the organisation to progress our vision for a low carbon economy.”

Fife is also currently home to a world-first green hydrogen gas network – named H100 – which is going live at the end of the year.

The scheme will bring renewable hydrogen into homes across the region, meaning families can heat their homes and cook with clean gas.

Prime Minister Sir Keir Starmer during a visit to Scotland. Image: PA.

Mr Craik told us: “With the green freeport there’s opportunities to support GB Energy. We should be part of the discussion.

“Fife is a definite contender.”

Is Fife ideally located?

Fife is located next to the North Sea, connects Edinburgh with the energy-rich north-east, and crucially can draw on expertise from one of the world’s best universities.

A spokesperson said St Andrews University “welcomes discussions” around Fife serving as a base for GB Energy.

They said: “As one of the sunniest places in Scotland, Fife is ideally located to harness the power of our natural resources such as solar, which is central to GB Energy.

“St Andrews leads the way in research on renewables, green hydrogen, battery technology and energy storage solutions.”

“I think Fife is well-placed,” said Mr Craik. “We’re well supported by universities around us.”

General Election 2024
Dunfermline and Dollar Labour MP Graeme Downie. Image: Steve Brown/DC Thomson.

New Labour Dunfermline and Dollar MP Graeme Downie agreed.

He said: “We have a good industrial heritage, we’ve got the skills, we’ve got the geographical location, and we’ve got the university.”

He told us he has discussed the matter with his two fellow Fife Labour MPs, adding: “It looks like Fife’s got all the right ingredients.”

Is Aberdeen’s case insurmountable?

Business leaders in Aberdeen have been strongly pushing for Labour to base GB Energy in the north-east since the firm was first proposed.

More than 700 voices from across various industries have backed a campaign being led by the Aberdeen and Grampian Chamber of Commerce.

Labour energy chief Ed Miliband previously acknowledged Aberdeen had a “strong claim”.

Many in the north-east would see it as a betrayal if the city was snubbed given Labour’s plans to extend the windfall tax, and end future oil and gas licences.

But Mr Craik said: “Fife has a big requirement for jobs as well. I understand the argument for Aberdeen, but I don’t think it’s a done deal.

“I think the questions need to be asked and answered in a measured way.”

Labour’s Scottish Secretary Ian Murray during a visit to Fife. Image: Steve Brown/DC Thomson

Speaking last week, Scottish Secretary Ian Murray hinted the process would be competitive and demand was already high.

He told us: “I’ve only been in this job a week, with all the bids that I’ve had there is probably going to have to be 72 GB Energies to satisfy the whole of Scotland.”

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