Birdwood energy, Derwent Industries manufacturing and renewables partnership 'worth $140M'

Approval of the sale of 119 hectares of land for around $4.6 million to Birdwood Energy and Derwent Industries will be decided by Wodonga Council tonight.

Council will air its response to concerns raised by former investment attraction director Michael Gobel about the price of $5 per square metre for 93 hectares.

"Despite the submission made, the council has received valuations, which reflect the value of the land parcels in their current state," staff wrote.

"The development may provide up to $140 million of investment in assets in Wodonga, and up to 100 jobs during construction and up to 100 jobs during operation."

Phase one of the plans, first considered by councillors in September, will involve 17.6 hectares for Derwent's steel manufacturing and 33 hectares for Birdwood's smart power station.

The second phase is expected to include a battery facility and research institute.

Birdwood chief executive Scott McGregor launched the company in Australia two years ago and is now based in Melbourne.

"It's actually smart economics to have cheap power produced near where you want to use it, and that's where companies such as Derwent come in, which is building high-tech manufacturing," he said.

"I have a lot of family up in Wodonga. The Logic estate is quite nicely structured, but it's never really properly taken off in terms of how it was originally designed.

"It has gas, but gas is expensive, and it has rail, which is good, but if your energy costs are too high ... it's hard to attract new business.

"Us bringing a solution to Logic, where we can essentially provide power for half the price, is attractive."

Mr McGregor said Birdwood and Derwent were "ready to get building start away" and solar would be added on over phases, with a desire to one day provide for all of Logic's energy needs.

"The idea is that we build it around Derwent straight away - any energy they use, we want to service," he said.

"We're in discussion to bring in more businesses.

"We should be able to produce enough energy for that entire estate and more.

"Yes there are other estates putting solar on the roof ... but not smart solar, really optimised solar - that's very early-stage in Australia."

Council first considered the proposed sale in September last year and Mr Gobel raised his concerns at the December meeting.

He said the sale of $5 per square metre was "a gross undervaluation of the land" and half of what Wodonga TAFE paid in a government-to-government transaction" in 2008.

"In my opinion, council should not be investing $30 million of ratepayers money to be selling this land as 'un-serviced' land at $5 per square metre," he said.

Council staff were due to present a report on the section 223 process on the sale at the January meeting but will do so tonight instead.

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In response to the land valuations, which were done by Preston Rowe Paterson, Mr McGregor said council had to go through due process.

"That's the council's business, but we're supportive of going through proper process," he said.

"I've looked at valuations; we've made sure we're not over- or under-paying.

"We're bringing a lot of good to Wodonga, that's our view."