Inverness Caley Thistle will miss out on much-needed income from a renewables company after a major deal was scrapped.
Norwegian firm Statkraft acquired a multi-million pound pumped storage hydro project in December from club shirt sponsor Intelligent Land Investments (ILI).
As part of the deal for the Loch na Cathrach project (previously Red John), Statkraft was to operate a park and ride scheme at the Caledonian Stadium’s north car park during construction.
At the time the deal was predicted to lead to a “considerable injection of cash” for Caley Thistle who have since been relegated to League One.
Statkraft looking for another site
But it has now been revealed the club and Statkraft have failed to reach an agreement on the move.
The company is now looking for another site in Inverness for the park and ride.
It said in a statement: “Statkraft have been unable to reach a commercial agreement with Inverness Caledonian Thistle.
“We intend to seek an alternative location for our park and ride scheme in Inverness, which will reduce traffic to the construction site while also ensuring economic benefits remain in the local area.
“We do not anticipate any delays to the project.”
The company says during its discussions it was informed the head leasehold interest of the car park is owned by former Caley Thistle chairman Ross Morrison and his business partner, rather than the football club.
It says this is a “different land ownership structure” to that referred to in the documents.
A Statkraft spokesman also said the UK Government has launched a consultation on its Long Duration Energy Storage support scheme for which Loch na Cathrach could qualify.
However, all projects will have to demonstrate that everything they have procured has been cost competitive.
Major blow to Caley Thistle
The spokesman added: “After carrying out an assessment of the scheme, and the possibility of entering into a new option agreement with all leasehold owners, we have been unable to reach a commercial agreement to take this forward.
“The gap between the two parties is unfortunately too wide.
“We will continue to seek a suitable location to install a park and ride to minimise traffic to our future site.”
The collapse of the deal is another major blow to Caley Thistle as it seeks to re-group after relegation.
The club has faced fans’ protests and has been strongly criticised for its proposal to transfer training operations to the home of Kelty Hearts in Fife.
Ross Morrison said the collapse of the deal is “deeply, deeply disappointing.”
“Right at the last minute they have said it is too dear after agreeing it all previously.
“There is nothing we can do, but I feel extremely aggrieved. It was massive.
“This was not the back of a fag packet agreement. It was well thought out and there was a lot of back and forward.
“They have the right to walk away from it, but to come back with ‘its too dear’ now- it wasn’t too dear last year.
“We feel we’ve given them everything they asked for and it’s all down to them wanting a reduction at this late stage.
“We feel after all this time it’s very bad form and we’re being kicked when we’re down.
“It’s horrible to get hit like this at the last minute.”
Mr Morrison said he and his partner bought Inverness Caley Thistle Property Company to ensure the club received rent from the deal.
Project expected to create hundreds of jobs
The 450MW Loch na Cathrach project at Dores obtained planning permission in 2021 after a public inquiry.
Construction is expected to start in 2026, with the aim of having the project operating by 2029.
The development is expected to create hundreds of jobs during construction and local permanent posts once operational.
Latest: Caley Thistle confirm Ross Morrison has stepped down as chairman
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