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BP hydrogen project in danger as landowner wins permission to build data centre on same site
Abstract
Supermajor would only be able to move forward with H2 Teesside scheme if UK government grants compulsory purchase order
A computer-generated rendering of what the data centre would look like on the Teesworks brownfield site, which is also earmarked for H2 Teesside.(Photo: Lichfields)
BP's 1.2 gigawatt blue hydrogen project in northeast England is in danger of collapse after the landowner was granted planning permission by the local council on Friday to build a data centre on the same site.
The UK supermajor can now only move ahead with the long-standing H2 Teesside project if the UK ‘s Department for Energy Security and Net Zero (DESNZ) grants the company a compulsory purchase order (CPO), which would require the scheme to be deemed a “compelling case in the public interest” under UK law, Upstream's sister title Hydrogen Insight reported.
The brownfield site in the town of Redcar — known as Teesworks, as it used to host a steelworks demolished in 2022 — is owned by the South Tees Group’s (STG) Teesworks Ltd, which is 90% privately owned by two local businessmen and 10% owned by the Tees Valley Combined Authority, itself a partnership of five local councils.