Multinational BP has pulled out from the H2 Teesside blue hydrogen project in a fresh set back to the UK’s hydrogen industry and government’s net zero push.
It marks another blow for BP on Teesside after it cancelled the HyGreen project in March, and another brake on the UK’s plans to develop its nascent carbon capture and storage sector.
Landowner South Tees Group sought permission to build a data centre on site which BP claimed was a “material change in circumstances”, prompting BP to withdraw its development consent order.
The UK government has identified Teesside as an ‘AI Growth Zone’ as it strives to kick-start the country’s sluggish economy.
How data centres will be powered remains a major concern as electricity demand is set to more than double by 2030 according to the International Energy Agency.
The 1.2GW project was announced in 2021 and was slated to deliver 10% of the UK’s clean power by 2030.
EDF power solutions UK and Hynamics have secured funding from the government’s Net Zero Hydrogen Fund (NZHF) for their Tees Green Hydrogen project.
The ‘hope’ is the facility can be operational by 2026, pending final investment decision, and future phases will seek to deliver up to 300MW.