RICHLAND — Cenate, a Norwegian battery parts manufacturer, is no longer considering Richland for its first-ever U.S. plant.
Karl Dye, president and CEO of the Tri-City Development Council, confirmed Cenate “graciously” ended an agreement to purchase a development site in the Northwest Advanced Clean Energy Park, near Framatome, from the city.
Richland was one of two sites being considered for a 40,000-square-foot plant.
Butte, Mont., was the other. It was not immediately clear if Cenate has backed away from Richland or both sites.
The apparent loss is unlikely to make a significant dent in Richland’s clean energy recruitment program. The city and its partners, including the Port of Benton, have agreements for a prospective carbon-free fertilizer factory, advanced nuclear fuel fabrication facilities and titanium melting facilities.
Collectively, the deals represent nearly $7 billion in potential investment in Richland and thousands of new jobs.
Cenate shared that its decision-making process was taking “longer than expected” and it delayed choosing a North American site, Dye reported.
The city of Richland agreed to sell 50 acres to Cenate in late 2023. Cenate was expected to finalize its choice between Richland and Butte by mid-2024. That date came and went with no announcements.
Neither Cenate nor officials in Butte could be reached this week to share if the North American expansion is expected to move forward.
Mandy Wallner, Richland’s economic development director, is hopeful Richland will be the preferred location if Cenate revives its search.
“They said they hoped to revisit the agreement at some point in the future,” she said, adding that Cenate said it had internal work that needed to be done.
Cenate indicated in 2023 it would build plants near Oslo and in the U.S. to mass produce anodes used in lithium-ion batteries using new technology.
The value of the investment was not disclosed.
Had it chosen Richland, it would have been eligible for significant property tax breaks from the city and from Benton County.
WA ‘targeted urban area’ tax breaks
The 2022 Washington Legislature authorized counties and cities to give limited tax breaks for up to 10 years to new industry in designated “targeted urban areas.”
Richland created its sprawling development zone two years ago, with Benton County creating a parallel program. Both subsequently awarded millions of dollars in property tax breaks to businesses interested in situating plants in the “TUA.”
ATI Specialty Alloys and Components received a $2.6 million waiver in exchange for a $111 million expansion of its titanium melting plant in north Richland.
Framatome received about $6.7 million in tax waivers for the $360 million expansion it is considering building at its Horn Rapids Road campus.
Atlas Agro secured $20 million in waivers in exchange for its proposed carbon-free fertilizer plant, which has seen its price increase to $1.5 billion. Atlas Agro has not finalized its decision to proceed with the plant.
The city also is considering selling 425 acres to an undisclosed nuclear fuels company known as Project Spin or Project Dune, which is expected to invest $4.5 billion if the project proceeds.
The Northwest Advanced Clean Energy Park was created after the Department of Energy transferred about 1,600 acres of Hanford land in 2015.
The land, never used for nuclear work, was transferred for development through local government agencies and TRIDEC.
