Land Dispute Delays Major Hydrogen Plant in Redcar
Redcar, Thursday, 30 October 2025.
BP and Teesworks’ clash over land use stalls UK’s largest blue hydrogen project, impacting future clean energy investments.
BP and Teesworks: A Clash Over Future Energy
BP and Teesworks are currently in a heated dispute over a patch of land at the former Redcar steelworks site. This disagreement has led to yet another delay in the decision regarding BP’s proposed H2Teesside blue hydrogen plant, which is poised to be one of the largest in the UK. The land in question is also desired by Teesworks for a planned AI data centre. The UK government has deferred its decision on BP’s Development Consent Order (DCO) to 4 December 2025 to allow more time for consideration [1][2].
The Implications of the Delay
The delay in the decision on the H2Teesside plant is not just a local issue; it affects the UK’s broader ambitions to transition to low-carbon energy sources. BP’s hydrogen plant is a crucial component of the UK’s strategy to decarbonise the energy sector and meet its Net Zero target by 2050. The plant would contribute more than 10% of the government’s hydrogen production target by 2030 [1][2][4].
Economic and Environmental Stakes
Local officials and stakeholders emphasise the economic benefits of the project, which promises job creation and long-term economic growth in the Teesside area. However, the ongoing land dispute with Teesworks, who have planning permission for their data centre, complicates these prospects. BP’s significant investment, reportedly up to £2 billion, underpins the potential economic impact of the project [3][6].
Teesworks’ Perspective
Chris Musgrave, chairman of Teesworks Ltd, has acknowledged the need for thorough consideration in such large-scale projects. He expressed understanding of the government’s decision to delay, yet remains focused on advancing their AI data centre project, which has already received planning approval from local authorities [1][2].
Future Prospects
While the delay is a setback, BP remains committed to negotiating a solution that would allow both projects to proceed. The Department for Energy Security and Net Zero has stated that the decision will be made in the ‘national interest’, indicating the high stakes involved. The outcome of this decision will be a significant indicator of the UK’s commitment to advancing its hydrogen economy and its broader green energy goals [2][3].