The Chronicle (South Tyneside and Durham)
Council could buy back site of proposed gigafactory
£15M SET ASIDE FOR POTENTIAL LAND PURCHASE AFTER THE COLLAPSE OF BRITISHVOLT
NORTHUMBERLAND County Council could buy back the land where the Britishvolt gigafactory was meant to be built, it has been claimed.
County Hall chiefs are in the running to take back the former Blyth Power Station coal yards site which has been earmarked for a massive battery plant, according to Northumberland’s Labour opposition leader.
The authority held an “urgent” vote on Wednesday afternoon to set aside £15m for potential land or property acquisition, which Scott Dickinson confirmed after the council meeting was in relation to the Cambois plot – though the county’s Conservative leader subsequently branded this “pure speculation”.
That came after it had emerged that administrators for the collapsed Britishvolt were in talks with “additional parties” who had shown interest in acquiring the site – giving fresh hope that the plans, which could create thousands of jobs, can still come to fruition.
Recharge Industries was selected by administrator EY as the preferred bidder to take over the failed firm and drive forward plans to build the battery plant, but the Australian business has still not paid the final instalment of an £8.6m transaction a year after that deal was struck. Politicians were told at Wednesday’s County Hall meeting by council chairman
Barry Flux that creating a £15m “Strategic Sites Acquisition Fund” would allow the council to “take advantage of a unique commercial opportunity that has only recently arisen”, though there was no specific mention of Britishvolt.
However, Coun Dickinson confirmed afterwards that the council was interested in the proposed gigafactory land – which it had previously sold to Britishvolt for a reported £4.8m.
He said it was “important for the council to show that it is committed to the site” even if it could be “embarrassing” for the council to potentially buy it back for more than it was sold for, though it is not known how much of the £15m allocation would actually be used on any future purchase.
It was previously reported that the council had a buy-back clause in relation to the land that would allow it to be repurchased for the same amount it was sold for in the event the development was not completed within 39 months of obtaining planning permission.
Leading councillors agreed to an extension of that clause in March 2023, but its end date was not publicly revealed at the time.
Coun Dickinson added: “People have lost confidence in the council to deliver on that site. We need to show, which is part of my reasoning for
[voting in favour of the £15m allocation] today, that we are committed to the site. There is an election next year and if I am successful as leader I want to show that I am committed to the site. Whether it is the council that delivers the site is irrelevant. It is that the council owns the site that is important so that it can enter negotiations, talk to businesses, and make sure that what is built and developed on there is what we want for the Northumberland people.”
Glen Sanderson, the council’s Conservative leader, refused to be drawn on the details of any possible purchase.
He said: “The creation of this Strategic Sites Acquisition Fund will allow us to respond in an agile way to investment opportunities as they arise and drive economic growth through strategic land acquisitions in the county. Our priority is to create more jobs and greater prosperity across Northumberland.
“From time to time that involves us acquiring land or property to accelerate regeneration objectives and maximise growth opportunities. Of course, we can’t discuss specifics at this stage.
“We have ongoing discussions with investors about a range of exciting opportunities across the county – when those discussions reach the right stage, it’s important we can be agile and flexible to secure those opportunities and that is what the fund we have just agreed is all about. Anything else at this point is just pure speculation.”
Britishvolt had planned to build a £4bn gigafactory and £100m of Government backing had been agreed, with hopes of creating 3,000 direct jobs and 5,000 more in its supply chain, but the firm went into administration in January 2023.