The oil and gas major is seeking a Development Consent Order (DCO) from the government after Redcar and Cleveland Borough Council approved landowner South Tees Group’s (STG) bid to build one of Europe’s largest data centres.

Reports state that Teesworks Ltd has objected to BP’s plans, arguing the hydrogen and carbon capture scheme would render the proposed data centre, planned on 115 acres earmarked for H2Teesside, unviable.

BP, meanwhile, told H2 View it is willing to find a “position of co-existence” that allows both developments to move forward.

“The DCO process for the H2Teesside project is well advanced, and in light of a planning application being approved, which overlaps substantially with the proposed hydrogen production facility, we will now take the time to consider this decision in line with our proposals,” a BP representative told H2 View.

“H2Teesside has for some time been seeking to find a position of co-existence with South Tees Group in respect of both parties’ aspirations for Teesworks, and it remains willing to continue those discussions on proposals that would enable both developments to co-exist.”

They described H2Teesside as a nationally significant project vital to the UK’s low-carbon hydrogen plans and Teesside’s economy, while STG labelled the data centre “critical national infrastructure” and said it was in advanced talks with an occupier.

H2Teesside was first announced in 2021 and is positioned to deliver 10% of the UK’s 2030 hydrogen production target. At full capacity, it’s set to produce 160,000 tonnes of low-carbon hydrogen per year.

However, while its associated CCUS projects reached a final investment decision (FID) last year, there was no update on the blue hydrogen project.

In May, reports surfaced that BP was considering slashing its 1.2GW project by up to 75% or cancelling it altogether, citing struggles to secure offtake, with Sabic extending its pause on the Teesside olefins plant once seen as a key customer.

While reports point to internal uncertainty over H2Teesside’s future, a BP spokesperson maintained to H2 View that the project remains vital to the UK’s hydrogen goals and Teesside’s economic development.

The Department for Energy Security and Net Zero (DESNZ) is set to rule on BP’s application by 28 August 2025. Approval would give BP the power to acquire the land – potentially overriding the approved data centre plans.