Government pushes back hydrogen plant decision

BP and South Tees Group have competing plans for part of the Teesworks site

A government decision over the building of a hydrogen plant has been pushed back amid a row over land which has subsequently been earmarked for an AI data centre.

BP is seeking a development consent order (DCO), which is required for nationally significant infrastructure projects, for a blue hydrogen plant on the Teesworks site in Redcar.

The government had been set to make its decision by 28 August, but this has now been pushed back to 30 October to "allow time to request further information", according to MP Miatta Fahnbulleh.

Since BP first announced its plans, landowners South Tees Group (STG) has sought permission for the data centre.

If the hydrogen plant is approved, BP would be given the power to compulsorily purchase the land it needs.

But STG now has different plans for the site and wants to build a giant AI data centre on it instead.

Teesworks is run as a joint venture between the publicly-owned and funded South Tees Development Corporation, led by the Tees Valley Combined Authority (TVCA), and two Teesside businessmen, Martin Corney and Chris Musgrave.

The men initially owned 50% of the shares of Teesworks, but that was raised to 90% in 2021 with the remaining 10% staying in public hands.

H2Teesside would be one of the largest blue hydrogen plants in the UK

BP has said the plant would be one of the UK's largest blue hydrogen facilities and represent more than 10% of the government's hydrogen production target by 2030.

But in a letter detailing its opposition to BP's plans, STG claimed the proposed data centre, which was approved by Redcar and Cleveland Council in the summer, was of "critical national importance".

The data centre would be housed on a specific patch of land BP had already earmarked for its hydrogen plant, H2Teesside, but the company has said it is willing to have discussions aimed at finding a solution "that would enable both developments to co-exist".