A marijuana farm could be built on a small island between the U.K. and Ireland.
The Peel Group, a real estate firm led by billionaire John Whitaker, wants to build a cannabis-growing facility on the Isle of Man.
The facility would be located on the fringe of Douglas and would be used to produce and distribute cannabis to patients around the world. The Isle of Man doesn't have a legalized medical cannabis market, meaning cannabis produced at the facility could not be prescribed for use on the island.
The Isle of Man is located in the middle of the Irish Sea and has a mostly finance based economy.
Chris Eves, finance director at Peel Group, told CNBC Wednesday that cannabis could be a lucrative new industry.
Eves said that the island has an opportunity to steal a march on this side of the Atlantic, and that the U.S. and Canada have already made a strong start.
There are around 10 buildings on the site, including warehouses and offices.
Eves said that the facilities would ensure maximum potency of the product.
Peel Group would lease several large warehouses to one or more tenants who would need a license before they could grow the crop.
Eves said that people with the necessary cannabis farming skills may need to be imported initially, since applications have been made by a number of parties.
Sales of cannabis are expected to increase in the next few years as more countries allow the drug for recreational use.
Eves said that Peel Group does not hold a view on whether recreational cannabis use should be legalized on the Isle of Man.
He said that they were not pushing for change. There is a business case for it. That feels to me to be the natural progression. societies are generally accepting of that direction of travel
The Peel Group, which includes Media City and the Trafford Centre mall in Manchester, intends to apply for planning permission for a cannabis farm in the next few months.
The public consultation on the Isle of Man will last until March 7.
While the development has received support from local residents and lawmakers, some are concerned that it will be an unattractive sight, while others worry that it will use too much energy.
The Isle of Man civil servant told CNBC that the energy requirements are incompatible with the supply and grid.
The cannabis farm would be powered by a solar farm.
The civil servant said that solar capabilities are limited on the island unless they are planning on investing in battery storage.
The leader of the Isle of Man's Green Party told CNBC that there are a number of sustainable issues that need to be considered.
There is a risk of a proliferation of single use plastic at the site and a high energy demand.
It is noteworthy that Peel NRE propose to install renewable energy to power the site. In the region of 15% of the Isle of Man's total electricity generation capacity, that is a huge amount of power.
The first phase is likely to be completed within three years of approval.
High net worth individuals in the Isle of Man have no capital gains tax or inheritance tax. The island's billionaires have been criticized for failing to invest more of their money in the area.
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