Avocet projects yet to materialise

by DOUGLAS SHEPHERD

A number of the ambitious development projects being touted by the Avocet Group of companies as far back as 2017, and which shareholders were told would produce tens of millions of pounds of income for the business have yet to reach the construction stage.

As Not Just Sheep & Rugby reported recently a number of truly eye-watering predictions of profit were being dangled before investors by Group chairman Martin Frost. They were contained in a number of circulars to 650 shareholders with stakes in a business involved in the 'disruptive technology' fields of fuel additives and hydroponic agriculture.

Three of the significant proposals for generating income were to be located in Tipperary, on Tees-side and in North Northumberland. But none of them appear to have got underway so far.

In July 2017 a delegation from Avocet visited Lisheen, near the village of Moyne in the Republic of Ireland, the site earmarked for one of the company's flagship schemes. Personnel from Avocet met with representatives of Tipperary County Council, presumably to discuss the details of a major initiative, and posed for a photograph to mark the occasion.

Lisheen mine was a lead and zinc mine where extraction had ceased in November 2015 after 17 years in operation.

According to the Avocet literature: "While surface and underground rehabilitation has been in progress, the mining company has actively collaborated with the local authorities in finding possible users for a site that is well served by power, water, and waste disposal infrastructure. The EU, Irish and Tipperary vision is of a bio-economy campus powered by the wind turbines that dot the neighbouring landscape and situated in an area of natural beauty. Avocet ticks all the bio-economy boxes and so is a perfect match."

Avocet was said to be conducting a feasibility study to assess the economics from Avocet’s perspective. Shareholders were told: "Simply put, Avocet has the resources and partners to prompt a 100-million-euro investment into Lisheen, What Avocet needs to understand is will the EU; the Irish Government, Tipperary Council and others match in whole or in part Lisheen’s proposed bio – economy?"

When asked to comment on the Avocet project this week, a Tipperary County Council spokesperson said:"The council can confirm that no public funds were committed by Tipperary County Council to Avocet projects".

Meanwhile there has also been a lack of apparent progress at Seal Sands on Tees-side, the venue for a 'small scale' production plant capable of "avocet additive sales of some £8 million for 2019 rising to £80 million by 2021 - such can facilitate some £400 million  pounds worth of blended avocet / methanol fuel by 2021."

Here's what Mr Frost and his fellow directors said about the scale of the North-east England venture in March 2018: "Projected estimated capital and setting up cost of proposed Seal Sands plant is between £16 to £20 million of which Avocet Fuel Systems Plc via Avocet Infinite Plc will need to put up between £2 and £4 million with an anticipated £10 million in grant funding supported by £6 to £8 million in unsecured low-cost government loans."

A third project in the Avocet portfolio was centred on Newburn, a 60-acre farm a few miles from Berwick-on-Tweed, and a property with "recently lapsed planning permission for an abattoir and anaerobic digestion unit. 

"Avocet has agreed (subject to planning) to acquire Newburn farm with the prime purpose  of exclusively slaughtering  all its  own Piemontese  cattle  and thereafter storing  and  marketing  all its  beef. Piemontese cattle are easily stressed and so as with deer/venison, special  handling and de-stressing  practices  need to be used."

The plan was to put through 1,000 cattle  in 2019, 2,000 in 2020, 3,000 in 2021 and settling down from  2022 to 4,000 per annum or some 80 carcases  per week.

"The  source  of the  Piemontese cattle  will  broadly be 50% British  and 50% Irish.The  planned 2022 sales turnover of Avocet  Farms will  be some  £20 million  per annum giving a  gross sales  margin in excess of 40% to which an additional  retail sales margin of £10 million  needs to be factored  to cover the butchery, storage, and direct marketing of the  meat."

Northumberland County Council planning department files show permission was granted for an abattoir to be developed at Newburn Holdings in 2005 with a condition that work should start within three years. But there is no record of any subsequent applications to revive the abattoir proposal.