The Corporate Director Communities presented a report which provided a review on the HyBont Project to date and ask Cabinet to determine the way forward. It outlines what are currently considered to be the next steps and estimated associated costs if Cabinet agree for the Council to continue in its current role in the project.

She explained that the report did not go into a full risk analysis, but rather the financial implications of continuing with the project.

She stated that for BCBC to complete the required forthcoming milestones it is currently considered that a revenue budget in the region of circa £525,000 is required between now and July 2025 (£215,000 in 2023/24 and £310,000 in 2024/25). Additionally, the capital funding required has been estimated to be in the region of £6 million. further details were at section 3 of the report.

The Cabinet Member for Climate Change and the Environment commented that it was an unfortunate report to see before us. It provides a realistic outlook on the financial position of our authority as well as many other authorities in Wales. The feasibility of continuing the project was not possible particularly when we need to be careful about every penny spent.

He added that while he believed that green hydrogen was part of the future, the Council was not in a financial position to continue with the project at this time.

The Cabinet Member for Housing, Planning & Regeneration echoed these comments and stressed the difficulty in funding projects during such difficult financial times for the Council.

The Cabinet Member for Finance, Resources & Legal added that the Council must provide services that are essential, and therefore projects like Hybont, although important for the 2030 Net Zero goals, was not as essential as education and social care.

The Leader added that as a Cabinet we need to make difficult choices, and continuing to fund potentially up £6 million was not a financially viable option at this time.

RESOLVED: that Cabinet:

1. Noted this report and the detailed work undertaken to date on this project.

2. Agreed to pursue Option B and withdraw from the project at this stage, due to the Council’s inability to meet the significant financial commitments required and the timescales of the project. However, it is also recommended that the Council has a dialogue with partners, including Welsh Government and for them to identify an alternative route forward with MEL.

3. Delegated authority to the Corporate Director – Communities, in consultation with the Section 151 Officer and Monitoring Officer, to give notice to MEL of the intention to withdraw from the Memorandum of Understanding dated 8th July 2022.