Teesworks data centre battle to continue with Ed Miliband decision
The battle over the future of a major portion of Teesworks is to continue, after Ed Miliband delayed making a planning decision on BP’s blue hydrogen project.
The Energy Secretary was set to make the development consent order decision for H2Teesside on Thursday, but instead pushed it back to a later date.
The project had been in pole position to take up part of the Teesworks site - a freeport which covers the former Redcar steelworks site.
Tees Valley Mayor Ben Houchen has previously welcomed BP bosses to Teesworks iin a bid to secure new investment and in 2021 said its plans were “marking us out as the go-to place for innovation in the hydrogen sector”.
However, in recent months, Teesworks Limited and the South Tees Development Corporation in the form of the ‘South Tees Group’ (STG) have themselves objected to the project, instead favouring the construction of a data centre.
This is the centrepiece of the region’s bid to become one of the UK’s AI growth zones, which would allow companies to receive rapid planning approval and preferential energy access.
It is competing with North Yorkshire, which has also bid and pitched a data centre at Drax power station.
Should the BP project get development consent that would help York and North Yorkshire Mayor David Skaith’s AI growth zone bid.
In a submission to Mr Miliband, STG said: “Teesworks is the only site in the UK with sufficient available land and the power connections to be able to AI growth zone at scale, and so it is the UK’s premier site in this respect.
“It is by far and away the Government’s best opportunity for delivering AI-led economic growth, and STG is ahead of the game having already secured approval for a data centre.”
It added that approval for the blue hydrogen project “would be inherently incompatible and irreconcilable with AI growth zone status and the nationally significant benefits which that designation will bring to Teesside”.
The Department for Energy and Net Zero has now asked STG for evidence of the land that could support its growth zone bid, as well “plans and designs for an alternative AI data centre”.
There is also reportedly a battle inside government over the future of the land, with Mr Miliband thought to favour H2Teesside, while Technology Secretary Peter Kyle wants the data centre built.
A government spokesperson said: "The statutory deadline for the H2Teesside application development consent order decision has been extended.
“All infrastructure planning decisions this government makes will be in the national interest – helping deliver the Government’s plan for change.”
A BP spokesperson added: “We acknowledge the decision by the Secretary of State to set a new date for the H2Teesside DCO decision.”