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Northvolt Battery Plant in Schleswig-Holstein: Conflict of Interest Allegations

Allegations of Bias Cast Shadow over Northvolt Battery Factory Approval

The planned construction of a Northvolt battery factory near Heide in Schleswig-Holstein, Germany, has been clouded by allegations of bias against municipal representatives. The accusations center around a payment made by Northvolt to hunting cooperatives.

Alleged Payments and Accusations of Bias

Björn Jörgensen, the administrative officer of the district administration, stated that "conversations between the two affected municipal representatives and Northvolt were not known within the district administration." The "Bild" newspaper had previously reported on the alleged payments.

Jörgensen added that the payment made by the company was also unknown to the district administration. "There were no indications of impartiality issues in connection with hunting that needed to be investigated," he said.

However, Landrat Thorben Schütt informed the German Press Agency (dpa) that the Dithmarschen district’s municipal supervisory authority does not generally consider hunting leaseholders and hunting rights holders of a hunting cooperative to be biased.

"Against this background, there is no reason for a repeat of the vote based on the current state of knowledge," Schütt said. The district became aware of the alleged wrongdoing on Monday.

Northvolt’s Response

A Northvolt spokesperson acknowledged that the issue of reducing existing hunting areas by the Lohe-Rickelshof hunting cooperative, which is adjacent to the municipality of Norderwöhrden, had been raised during the zoning plan process.

"In addition to compensation for various interventions during the construction of the factory, a voluntary settlement in a symbolic amount of €3,000 each was agreed for the two hunting cooperatives, not for individuals," the spokesperson said.

"Accordingly, there were no counter-services from individuals," the spokesperson emphasized. The Norderwöhrden hunting cooperative requested the payment on May 16, 2024, and it was transferred to the cooperative’s account on August 14 by Northvolt. "Northvolt has no knowledge of the cooperative’s use of the funds."

Legal Implications

The allegations of bias have raised concerns about the validity of the Gemeinderat (municipal council) of Norderwöhrden’s decision on January 22, 2024, to approve Northvolt’s plans for the battery factory. The vote passed with four votes in favor and three against.

Volker Boehme-Neßler, Professor of Public Law at the University of Oldenburg, told "Bild" newspaper, "Anyone who has their own interests at stake can no longer make unbiased decisions for the common good. Because two biased council members voted, the resolution on the zoning plan is unlawful."

Northvolt’s Financial Struggles

Northvolt has been facing financial difficulties, which could have implications for the federal government and the state of Schleswig-Holstein. The company has received around €600 million from the state-owned development bank KfW, for which the federal government and the state are guarantors in equal parts. Schleswig-Holstein’s state government intends to finance its share through additional debt.

A government spokesperson in Kiel stated, "We are looking into the newly emerged situation and evaluating it accordingly." The state chancellery is also in contact with the district and the municipality in this regard.

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