BP pulls out of building Teesside hydrogen plant

December 7, 2025 |

In the UK, BBC reported that BP has pulled out of building a hydrogen plant on Teesside following a row over whether the site would be better suited to housing a data center instead.

A government decision on whether the plant at Teesworks in Redcar could be built had been due this week.

But the energy firm backed out before the decision could be made, citing a “material change in circumstances” to the land that the plant had been due to be built on.

The project, H2Teesside, had been mired in controversy after landowners South Tees Group (STG) sought permission to build a data center there instead. Teesworks Ltd, which is part of STG, said it wanted to maximise the land’s benefit for locals, according to the report.

BP previously said it was willing to have discussions aimed at finding a solution “that would enable both developments to co-exist”.

The Department for Energy Security and Net Zero (DESNZ) said the decision to pull out had been made by BP.

“We continue to provide a route for hydrogen projects in Teesside, including Tees Green Hydrogen, which is moving towards final investment decision, along with several other projects creating high-quality jobs for the region,” a spokesperson said.

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Category: Fuels

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