Walsall's bus depot sold to pave way for future franchise bus system and hydrogen-powered buses

The move is in preparation for the introduction of a future franchise bus service system and the roll out of hydrogen-powered buses which will be operated from the site using water sourced from the nearby Wyrley & Essington Canal, as part of efforts to reduce emissions.

National Express West Midlands said the sale will not affect its staff or services.

Under the deal the bus company is remaining at the garage in Carl Street off Bloxwich Road, Leamore which it has leased back from the combined authority.

The body told the Express & Star that the money for the purchase came from it's investment funding pot and not from transport infrastructure investment budgets.

Transport for West Midlands director Pete Bond said: “The purchase of Walsall bus depot was approved by the West Midlands Combined Authority Investment Board in December as providing value for the taxpayer and in line with the authority's investment policies.

“The deal also prepares the ground for future collaboration with bus operators, to de-carbonise our public transport with infrastructure for zero emission buses and improve competition for bus services to the travelling public.”

The authority did not reveal how much it spent on the acquisition and said the terms of the sale were commercially sensitive.

Under the hydrogen bus scheme the Walsall garage is earmarked for a hydrogen generation facility in partnership with the Canals and Rivers Trust.

Walsall Council leader Mike Bird, combined authority member, said: "We are looking a a franchising model for our bus services and owning the depot will give us some flexibility. We have plans to create a hydrogen filling station at the garage

National Express West Midlands stated: "The sale of the Walsall depot was a long-planned decision which was completed at the end of last year. The sale will not affect bus services or employees as National Express West Midlands has leased back the garage, while West Midlands Combined Authority are the freeholders."

Four years ago the privately-owned Yardley Wood bus depot in Birmingham, which is operating on a long-term lease to National Express, was sold for £6.8 million via an investment company.

Meanwhile plans are afoot to replace diesel vehicles currently operating from depots in Wolverhampton, Pensnett in Dudley and West Bromwich in Sandwell with electric buses by the end of the decade.