Assessment of infrastructure for Sunderland City Council’s future gigafactory

Amberside have been working with Sunderland City Council on their development of an International Advanced Manufacturing Park (IAMP) which is set to play a huge role in the area’s high-profile decarbonisation efforts.

The plan, which is a joint effort with South Tyneside Council, will see a new battery gigafactory built next to the existing Nissan plant, creating a unique opportunity for the automotive and advanced manufacturing sectors and significantly boosting the North East economy.

Sunderland City Council has been at the forefront of implementing smart energy solutions to achieve their Net Zero Carbon Emission goals, committing to global sustainability objectives and ambitious targets set out in their city-wide Low Carbon Framework and the Sunderland City Council’s Low Carbon Action Plan.

Playing an important role in the North East LEP, which is considered to be the UK’s leader in heat networks rollout, Sunderland Council has many innovative initiatives in the pipeline that help fuel the regional profile, such as being the pilot region for heat zoning.

 Amberside undertook a model and business case (and risk) review for the infrastructure needed to support the future development of an IAMP, as well as the plans to promote the adoption of heat networks in the local area.

To deliver the mandate Amberside advisors have:

✓ Reviewed and critically assessed the outline business case and alignment with Authority Gateway process

✓ Considered likely assessment of IAMP project under HM Treasury Green Book 5-case model

✓ Considered impact of status as Energy Intensive Industry (EEI) and interaction with the UK Emissions Trading Scheme (UK ETS)

✓ Identified weaknesses in assessment of benefits for IAMP (and heat networks)

 ✓ Considered business rates impact, including exemption for low carbon heat networks

Following on from Amberside’s involvement in the project, Sunderland City Council has backed the planning application and now in August 2023 their South Tyneside counterparts also expressed their approval for phase 2 of the development, reaching another important project milestone.

It is expected that over the next 10 to 15 years, IAMP will support more than £400m of private sector investment, creating over 7,000 jobs.  It has already been designated a ‘Nationally Significant Infrastructure Project’ by UK Government, which has provided £42m through the North East LEP towards infrastructure including new roads, bridges and environmental enhancements to support the development.

To find out more about this project or about how Amberside can support local authorities in creating, reviewing and finalising business cases for infrastructure and energy transition projects, please contact Mark Easter, Amberside Head of Commercial Advisory.