Plans for a £100 million medicinal cannabis complex on the Isle of Man have been withdrawn, dealing a blow to the crown dependency's ambitions to establish itself as a regulated cultivation hub.
Peel NRE — part of billionaire Isle of Man resident John Whittaker's Peel Group — had proposed a large campus near Cooil Road featuring roughly 78,000 sq ft of cultivation space and more than 100,000 sq ft of research and development facilities. The scale of the scheme meant it would have been considered by the island's Council of Ministers.
The company had marketed the project as "game-changing", estimating it could have supported up to 250 jobs spanning security, botany and technology roles. The Department for Enterprise had backed the application.
Objections from utilities and climate officials
The proposal faced resistance from several quarters. Manx Utilities raised concerns, while the head of the Manx government's climate change team also objected. Douglas Council and Friends of the Earth both spoke out against the development.
Peel NRE has now withdrawn the application entirely, leaving unanswered questions about the next phase of the island's cannabis industrial strategy.
High hopes for a licensed cannabis sector
The Isle of Man had positioned medicinal cannabis as a pillar of economic diversification. Ministers hoped to license as many as 10 firms by the end of 2025 as part of a wider plan to double GDP by 2032.
Enterprise Minister Tim Johnston said the government was "really looking to diversify our economy", with a regulated cannabis sector seen as one route to attract inward investment and high-skilled employment.
Demand for medicinal cannabis remains strong — the UK imported record volumes in 2025 — but global oversupply has squeezed profit margins across the industry, making large greenfield projects harder to justify.
Other Manx projects still in play
Not every Isle of Man cannabis scheme has stalled. In late 2024, planners approved GrowLab Organics' (GLO) purpose-built complex and headquarters in Ballasalla, near Ronaldsway airport — a development the firm said would be the first of its kind on the island.
Alex Fray of GrowLab Organics said the Ballasalla site was expected to be completed within 12 months of approval, though construction has yet to begin. The company said it still hoped to start exporting later this year.
The withdrawal of Peel NRE's Cooil Road plans underscores the gap between political enthusiasm for a Manx cannabis industry and the planning, environmental and commercial hurdles large schemes must clear before breaking ground.
