Highlights

• BP abandons Teesside hydrogen plant due to data centre conflict and weakening hydrogen demand.
• Company continues gas-fired power station with carbon capture and regional carbon storage in Teesside.
• Northern England sees growing land competition for hydrogen, data centres, and munitions factories.

BP Plc has abandoned plans for its hydrogen plant in Teesside, northeast England, after the proposed site overlapped with a new data centre development.

Local authorities approved the land for the data centre, which created an incompatibility that forced BP to halt the project.

In addition, hydrogen demand in Teesside has weakened, as major industrial users scaled back operations or delayed decarbonisation initiatives, thereby increasing the risks associated with the hydrogen venture.

Read More: BP to Withdraw Funding from Princeton’s Carbon Mitigation Initiative

Strategic shift in BP’s energy portfolio

The decision marks another step in BP’s retreat from low-carbon projects. Over the past year, the oil giant has sold off US onshore wind assets, exited its Australian green hydrogen hub, and spun off its global offshore wind portfolio, as well as cancelled plans for a Dutch biofuels plant.

These moves accentuate a retrogression to oil and gas investments, with BP focusing on projects that give more immediate returns. The hydrogen cancellation follows this strategy and aligns with the company’s refocused energy plans.

Also Read: Research: European ESG Funds Invested Over €123B in Fossil Fuels

Continuing projects at Teesside

Despite dropping the hydrogen plant, BP continues to scale a gas-fired power station with carbon capture in Teesside, alongside a regional carbon storage scheme. These projects aim to manage carbon emissions in the area.

Teesside is a hub for multiple industrial and energy projects, but land competition is increasing, with data centres and potential munitions factories also targeting available sites.

Local and national implications

The UK government maintains pathways for hydrogen projects in Teesside, which indicates that hydrogen development could still proceed in other areas. However, the combination of declining industrial demand and site conflicts has made hydrogen expansion at this location high-risk.

The clash with the data centre shows the complex planning environment in northern England, where multiple sectors are vying for limited land.

Takeaway

BP’s decision to drop its Teesside hydrogen plant indicates a mixture of land use conflicts and a softening hydrogen market.

While BP continues with gas-fired power and carbon storage projects, the hydrogen setback shows the challenges facing low-carbon energy initiatives in the UK.

See Also: Investigation Uncovers European Green Funds’ Hidden Activities

Teesside’s industrial environment is changing quickly, with energy, tech, and defence sectors competing for the same space, shaping investment and development decisions in the region.

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