Scrapping of hydrogen plant plans 'disappointing'

BP has dropped its plans for a green hydrogen plant

BP's announcement that it had dropped plans for a "green" hydrogen plant has been described as "bitterly disappointing".

The multinational had previously sought planning permission to build a power plant in Redcar, which would have produced hydrogen by breaking down water using electricity.

But as part of a shift in strategy away from renewables, the firm has now scrapped the scheme.

Leader of Redcar and Cleveland Borough Council, Alec Brown, said that despite the "blow", BP remained committed to "innovative projects" in the region.

BP had previously said the construction of HyGreen would create up to 500 jobs with the likelihood the "majority" would be taken by people living in the Middlesbrough and Stockton area.

The electricity used at the plant would have mainly been derived from low carbon sources and the hydrogen would have been used by industry.

The firm said it would now be focusing on other projects in the area including Net Zero Teesside and a blue hydrogen plant.

'Decarbonisation blow'

Brown said: "This is bitterly disappointing news - but we remain optimistic about the future."

He said his administration would support all those, including BP, working on green energy projects in the region.

Brown also said these schemes would "help secure jobs" and have "huge potential".

Prof Sara Walker, who is leading a UK Research and Innovation (UKRI) project into the integration of hydrogen into the wider energy landscape, said the news was a "blow to the decarbonisation of Teesside and to the overall development of green hydrogen in the UK".

However, she said that the government had backed another green hydrogen project in Teesside, developed by EDF.

Tees Valley Mayor Houchen said the combined authority had seen "incredible progress" in its plan to develop Teesside as a "global centre for green energy" and there remained "huge interest" from investors.

But he did not provide a comment on BP scrapping a scheme he had previously described as a "coup for the region" that would create "well-paid, good quality jobs".