Aberdeen has been beaten by Glasgow to be the country's nomination for the UK-wide institute, which will study new technology, despite the north-east city's strong credentials.

A row has broken out over Scotland's choice of a £1bn energy research hub.

Aberdeen has been beaten by Glasgow to be the country's nomination for the UK-wide institute, which will study new technology, despite the north-east city's strong credentials.

Several strong factors point to the case for Aberdeen being the hub including the fact that of the 2000 strategically important energy companies in Scotland, including many major global players, more than 900 are in the area immediately surrounding the city.

The UK's largest renewable energy conference, All-Energy, is also held annually in Aberdeen. Although no official announcement has yet been made, those involved have been told that hub bid will be based around Strathclyde.

Aberdeen North SNP MSP Brian Adam claimed the situation was a mess inherited from the Labour-LibDem administration.

He said: "It is ridiculous of Labour MSPs and MPs to start complaining about a committee set up under their watch."

He blamed former enterprise minister Nicol Stephen for the arrangement undertaken "by academics and no-one else."

Mr Stephen rejected the suggestion, saying: "If Glasgow is being proposed as the Scottish hub this is a disgrace. The energy industry has strongly supported Aberdeen's bid and the best prospect for success was always with Aberdeen as the hub. The idea that as enterprise minister I agreed to this decision being left to academics is untrue.

"This was always going to be a fiercely political decision and I repeatedly emphasised my support for Aberdeen. The SNP enterprise minister must have been involved in this decision every step of the way and there could not be a clearer example of central belt bias."

In one of his first speeches as Energy Minister Jim Mather indicated that the executive's preferred location for the energy institute was Aberdeen.

Yesterday he said: "The DTI in Westminster made it clear that they required all bids to be focussed on a specific location. On these grounds, the university consortium evaluated Glasgow as the hub location which best meets the DTI's research criteria. At no stage was this a decision for government, but rather an academic evaluation by the university consortium - as indeed the DTI had prescribed."

Kate Dean, the leader of Aberdeen City Council said: "We believe the process has been flawed and we cannot believe they have overlooked Aberdeen.

"We will continue to fight Aberdeen's corner because that will strengthen Scotland's chance."

Scotland is bidding against four English consortia for the Energy Technologies Institute, proposed by Gordon Brown when chancellor.

It will co-ordinate research and development of low-carbon and renewable energy technologies over the next 10 years.