Land in south Heysham and Middleton will be sold to developers to help create a ‘Heysham Gateway’.
Lancaster City Council hopes the large areas of vacant land will be regenerated by businesses to capitalise on demand created by the new Bay Gateway road.
The council wants to see the Heysham Gateway become a major area for jobs in the region and help Heysham Port boost its trade with the Irish Republic, Northern Ireland and the Isle of Man.
Priority on the 47.5 acres of council-owned land will be given to job creation, energy generation, environmental technology and port-related uses. Plots of land will be sold on a long leasehold basis so the council can retain some control over any development.
The decision to dispose of the land was made on Tuesday by Lancaster City Council cabinet.
It comes as various energy projects are either under way or being mooted in the area including cables and substations for offshore wind farms and a proposed tunnel head at Middleton for a new National Grid under-Bay connection from Moorside in Cumbria.
Heysham Gateway history:
1939 - Heysham Aviation Works founded
1939-45 - Produced wartime aviation fuel
1948-1970s - Produced petroleum (Shell) and ammonium nitrate fertilisers (ICI)
1970s and 80s - Heysham 1 and 2 power stations built
Early 1970s - Petroleum production ceases
Early 1980s - Fertiliser production ceases
Mid-80s - City council buys around 80 hectares of site
2001 - Heysham Port acquired by Mersey Docks and Harbour Company
2005 - Lancashire County Council buys Lancashire West Business Park (formerly ICI land east of Middleton Road) for waste transfer station.
2009 - Lancashire Wildlife Trust take on management of most of the site