It was reported in early September that the government was delaying a decision regarding the building of a hydrogen plant on Teesside. This decision has been delayed in the middle of a row over land which has subsequently been earmarked for an AI data centre.
It was noted that, “BP is seeking a development consent order (DCO), which is required for nationally significant infrastructure projects, for a blue hydrogen plant on the Teesworks site in Redcar”.
Blue hydrogen is so named any time that the carbon generated from steam reforming is “captured and stored underground through industrial carbon capture and storage (CSS)”. This means that blue hydrogen is sometimes referred to as carbon neutral as the emissions do not end up being dispersed in the atmosphere.
It is also noted however, that “some argue that “low carbon” would be a more accurate description, as 10-20% of the generated carbon cannot be captured”. It is further argued that “green hydrogen is the only type produced in a climate-neutral manner, meaning it could play a vital role in global efforts to reduce emissions to net zero by 2050.”
The government had been due to make its decision on the hydrogen plant by 28 August. However, according to MP Miatta Fahnbulleh, the Member of Parliament for Peckham in London, this has now been delayed until 30 October to “allow time to request further information”.
It has also been reported that “since BP first announced its plans, landowners South Tees Group (STG) has sought permission for the data centre. If the hydrogen plant is approved, BP would be given the power to compulsorily purchase the land it needs”.
Teesworks
Teesworks is run as a joint venture between two Teesside businessmen, Chris Musgrave and Martin Corney and the publicly owned and funded South Tees Development Corporation, led by the Tees Valley Combined Authority (TVCA. Teesworks has become somewhat notorious for a number of scandals.
Indeed it has been commented: “Teesworks is the location of Britain’s largest brownfield remediation project into which hundreds of millions of public funding has been poured, and the focus of many of the Labour government’s green energy revolution hopes. Ministers can hardly leave responsibility for it in the hands of a mayor, combined authority and development corporation that have shown themselves so incompetent in managing it”
Jake Milner
I asked Jake Milner, from Teesside University for his take on the news of the delaying of the decision on the hydrogen plant:
“While delays over conflicting developments at Teesworks are regrettable, they may give central government valuable time to weigh the long-term benefits of each option more carefully. Policymakers must recognise that such choices effectively ‘lock’ regions into industrial pathways that are difficult to reverse, making the outcome pivotal for Teesside’s future industrial strategy.
“If policymakers are serious about the ambition to establish the world’s first net-zero industrial cluster by 2040, the heavy environmental impact of AI data centres cannot be overlooked. Moreover, these facilities typically generate limited employment compared with other forms of investment.
“That said, there are advantages to Teesside positioning itself at the forefront of an innovative sector that will be critical to the national economy for years to come. The decision under consideration will therefore be a telling signal of how policymakers envisage Teesside’s industrial future, and the role of sustainability in it”.
Comment
It is unfortunate that Teesworks has been beset by such controversy, as it is vitally important to Teesside and the wider North East , that Teesside can become a leader of the green industrial revolution, which we so badly need, both as a response to the deepening Climate Crisis and to revive our economy, which has been in the doldrums for many decades.
It therefore does seem to make sense for the decision to be delayed until it can be certain that the correct decision is being made.
However, there still needs to be some serious thought given to just how environmentally friendly any scheme involving blue hydrogen will really be, As has been stated the only truly environmentally friendly hydrogen is green hydrogen, made from environmentally friendly products and it would be wrong to establish a blue hydrogen plant and trumpet its green credentials, if it was really nothing more that an excuse for fossil fuel companies to continue with ‘business as usual’.
There must also be serious thought given, as Jake Milner says, to the effects of that AI-generated data centre.
This is indeed a potentially transformational moment for the economy of Teesside and the wider North East and the decisions made must be the correct ones.

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