Teesworks BP hydrogen plant decision delayed again

A government decision on whether a hydrogen plant can be built has been delayed for a second time amid a row over land that is also earmarked for an artificial intelligence (AI) data centre.

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

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

BP acknowledged the delay, while landowners South Tees Group (STG) said it recognised “thorough consideration” was needed.

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

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

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

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

BP has previously said this 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.

The company has previously said it was willing to have discussions aimed at finding a solution “that would enable both developments to co-exist”.

STG chairman Chris Musgrave said its focus was on “enabling job creation, long-term economic growth and generating positive outcomes” for the local community.

“While the government has deferred its decision on BP’s Development Consent Order for H2Teesside, we recognise that major projects of this scale require thorough consideration and due process,” he said.

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 Mr Musgrave.

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

The initial deadline for the DCO decision was 28 August.