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ALASDAIR CLARK: Why GB Energy should be based in Fife

Handy links north and south combined with the expertise needed makes the Kingdom the perfect base for Labour's new energy firm.

Keir Starmer Anas Sarwar GB Energy Fife
As the new Labour government decides where the HQ will be, they need look no further than Fife. Image: PA

As the new government sets out exactly how it will fulfil those all important election promises, few will be more subject to more scrutiny than the £8.9 billion GB Energy pledge.

The promise has already sputtered into life in the form of a partnership with the crown estate touted as a way to accelerate the building of thousands of new offshore wind turbines in the coming years.

The stakes are high. Polling shows Scots who backed Sir Keir Starmer have serious expectations of the new state-run body.

More than half expect the flagship promise will drive-down ever growing fuel bills that too many are struggling to afford.

Meanwhile, 45% want the firm to sell gas and electricity directly to the public.

As ever with shiny political promises though, success is far from assured. Energy secretary Ed Milliband is yet to spell out exactly what it will do.

Secretary of state for energy security and net zero, Ed Miliband. Image: PA

We know it will marshal £8bn in taxpayer cash into renewables projects and may even operate its own schemes.

Whether it will sell directly to the public, and exactly how taxpayers will see a return on their investment, is still be realised.

But just as important is another key plank of the promise – that the nationalised energy firm’s new HQ will be based in Scotland.

Government insiders are tight lipped about where in Scotland that will be.

Where will GB Energy be headquartered?

In an interview with The Courier as he visited Kirkcaldy, Secretary of State Ian Murray indicated there was tough competition.

He told me: “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.

“We made the commitment it would be based in Scotland. It will be headquartered here for a number of very good practical reasons but also because this is where the energy is being produced and therefore it should be here.”

Aberdeen has been Scotland’s oil capital, and it’s seen as the front runner.

The assumed front runner is Aberdeen, with whispers it could be announced as part of Scottish Labour campaign for the Holyrood elections in 2026.

It would be a shrewd move, politically speaking. If Anas Sarwar hopes to topple the SNP and lead his party to power in Scotland, securing support in the north east will be important.

But while Scotland’s oil capital may have a strong case, politically or otherwise, the new government may just find a better home for GB Energy further south.

Undoubtedly an outside bet, Fife may prove an irresistible alternative. I know politicians representing the region are making the case passionately.

Their case is a strong one. The Kingdom is a gateway to a successful energy transition from fossil fuels to renewables.

Along the shores of the Firth of Forth, new life is waiting to be discovered in the former oil rig construction yards or through a fresh future at the under-threat Grangemouth refinery.

Done right, the plan could grant a new lease of life to the struggling Grangemouth refinery. Image: Shutterstock

The private sector has already recognised this opportunity, creating a base of skills and expertise in key areas like offshore construction at Titanic shipbuilder Harland and Wolff’s Methil base.

The company hopes to expand this site, building more structures for offshore renewables, including jackets – the large underwater structures which wind turbines stand on. But it’s currently trying to seek new finance, putting 200 jobs at risk.

Indeed, Mr Sarwar has already recognised this potential during a campaign visit to Harland and Wolff’s Methil yard.

He said: “What we want to do is invest in our port infrastructure, to invest in our supply chain infrastructure.

Scottish Labour leader Anas Sarwar during a visit to the Harland and Wolff construction yard in Methil. Image: PA

“There is huge potential in this site, for example, to ramp up that supply chain and that infrastructure, just like there is in other parts of the country as well.”

Areas which have suffered the devastating effects of deindustrialisation could benefit hugely.

Fife’s case is strengthened when its comes to GB Energy as an investment vehicle too.

The Pitreavie Business Park and Carnegie Campus in Dunfermline already play a key role in Scotland’s financial services sector.

Away from the business case, and similar to Aberdeen, basing GB Energy in Fife could also prove a smart political choice.

Mr Sarwar’s Labour candidates in Dunfermline, Glenrothes and Kirkcaldy toppled sizeable SNP majorities at the general election.

But Labour’s green shoots of recovery north of the border are still tender.

Underdog Fife not to be written off

Voters were told to do more than send a message to Westminster, with the campaign promising to put Scotland at the heart of a Labour government.

Showing those who switched their vote that their trust was well placed, and that struggling communities will see the benefits, will be key.

As the fierce competition for Labour’s headline-grabbing manifesto commitment heats up, the smart money may yet prove to be on Fife.

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