In a clash of development plans, a battle is underway for 115 acres of the Teesworks regeneration site in Redcar. Local councillors have approved an AI data center on land that BP hopes to use for its H2Teesside blue-hydrogen plant.
BP is seeking a development consent order from the UK Government for the H2Teesside project, aiming to create one of the UK’s first large-scale blue-hydrogen hubs. However, the landowner, South Tees Group, has secured approval for an AI data center, setting the stage for a showdown between the two projects.
While BP argues that its hydrogen plant is of national significance and aligns with the government’s hydrogen production targets, STG believes that the data center is critical national infrastructure. The government faces a dilemma as it must balance the benefits of hydrogen production with the importance of AI and data centers. The two parties are open to discussions for a potential compromise to coexist on the site.
