£100m medicinal cannabis complex plans withdrawn

Plans to build a £100m complex on the Isle of Man to grow and export medicinal cannabis have been withdrawn, four years after they were submitted.

Property investment company Peel NRE submitted its proposals in June 2022 but they were withdrawn earlier this year following unresolved talks with several government bodies over environmental impacts, infrastructure capacity, water supply and power requirements.

The project, which proposed about 78,000 sq ft of cultivation space and more than 100,000 sq ft of research and development facilities, was large enough to be considered by the island's Council of Ministers.

Peel NRE is part of billionaire island resident John Whittaker's Peel Group.

It had described its plans as "game-changing".

Peel NRE said the project could have created up to 250 jobs, ranging from security to botany and technology.

The Department for Enterprise supported the application.

However, concerns were raised by Manx Utilities, while the head of the Manx government's climate change team also objected.

Douglas Council and Friends of the Earth also both spoke out against the proposed development.

There were high hopes for the medicinal cannabis industry on the Isle of Man.

The British crown dependency was hoping to license as many as 10 firms by the end of 2025 as part of a strategy to spur development.

Enterprise Minister Tim Johnston said the Manx government was "really looking to diversity our economy" and encouraging a medicinal cannabis industry was one aspect of a plan to double the island's GDP by 2032.

While the demand for medicinal cannabis is high, with the UK importing record amounts in 2025, profit margins have weakened significantly due to global oversupply.

In late 2024, GrowLab Organics (Glo) was given permission by planners to construct a purpose-built complex and headquarters in Ballasalla, near Ronaldsway airport.

Alex Fray from the firm said the development, which would be the first of its kind on the island, was expected to be finished within 12 months.

Construction is yet to start, although the firm said it was still hoping to start exporting goods later this year.

Read more stories from the Isle of Man on the BBC, watch BBC North West Tonight on BBC iPlayer and follow BBC Isle of Man on Facebook and X.