Teesworks BP hydrogen plant decision delayed again

A government decision on whether to build a hydrogen power station has been delayed for a second time due to a dispute over land, which is also required for an artificial intelligence (AI) data center.

Energy company BP has sought planning permission for the Teesworks site in Redcar, which is required for nationally significant infrastructure projects.

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

BP acknowledged the delay, while Teesworks Ltd, which wants to build the data centre, said it recognized the need for “careful consideration.”

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

If the hydrogen plant is approved, BP will have the right to compulsorily buy the land it needs.

But Teesworks Ltd. instead wants to build a giant data center with artificial intelligence and received planning permission from Redcar and Cleveland City Council in August..

The data center will be located on a specific plot of land that BP has already allocated for its blue hydrogen plant. H2Teesside.

BP previously said it was open to discussions aimed at finding a solution “that allows both developments to coexist.”

Teesworks Ltd chairman Chris Musgrave said: “While the government has delayed a decision on BP's consent order for the H2Teesside development, we recognize that major projects of this scale require careful consideration and due process.”

Teesworks is run as a joint venture between the state-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 Teesworks shares, but this increased to 90% in 2021, with the remaining 10% remaining in government hands.

The original DCO decision deadline was August 28th.