Teesworks BP hydrogen plant decision delayed again

The government’s decision on whether to build a hydrogen plant has been delayed for a second time due to a dispute over land also earmarked for an artificial intelligence (AI) data center.

Energy company BP is seeking a development consent order (DCO), required for infrastructure projects of national significance, for the Teesworks site in Redcar.

The deadline for a decision was Thursday, but the government extended that date to December 4 to “allow time to consider the information further”, the Department of Energy Security and Net Zero (DESNZ) said.

BP acknowledged the delay, while landowners South Tees Group (STG) said they recognized “careful consideration” was needed.

DESNZ said a decision would be made in the “national interest”.

If the hydrogen plant is approved, BP would have the authority to compulsorily purchase the land it needs.

But STG instead wants to build a giant AI data center on the site and received planning permission from Redcar and Cleveland Borough Council in August.

STG’s proposed data center would be housed on a specific plot of land that BP has already earmarked for its blue hydrogen plant, H2Teesside.

BP has previously said it will be one of the UK’s largest blue hydrogen installations and will represent more than 10% of the government’s hydrogen production target by 2030.

The company previously said it was ready to enter into discussions aimed at finding a solution “that would allow the two developments to coexist”.

STG chairman Chris Musgrave said the aim was to “enable job creation, long-term economic growth and generate positive outcomes” for the local community.

“While the Government has deferred its decision on BP’s development consent order for H2Teesside, we recognize that major projects of this scale require careful consideration and due process,” he said.

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

Men initially owned 50% of Teesworks shares, but this increased to 90% in 2021, with the remaining 10% remaining in public hands.

The original deadline for the DCO’s decision was August 28.