Industrial gas major BP is seeking a Development Consent Order (DCO) from the government after the Redcar and Cleveland Borough Council approved landowner South Tees Group’s (STF) plan to build a data centre.

However, the Department for Energy Security and Net Zero (DESNZ) has delayed the decision from today (30 October) until 4 December to allow time for further consideration.

DESNZ said the final decision will be made in “the national interest.”

If approved, BP would gain compulsory purchase powers at the Teesworks site – essentially a legal right to force the sale of the land it needs, even if STG doesn’t want to sell.

However, STG, which plans to build one of Europe’s largest data centres, reportedly objected to BP’s H2Teesside plans earlier this year, arguing the hydrogen and carbon capture scheme would render the proposed data centre, planned on 115 acres earmarked for H2Teesside, unviable.

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

Nevertheless, the UK oil and gas firm also described the data centre plan as “speculative” and “physically incompatible” due to hazard zones and safety limits.

Planning consultants representing STG rejected that claim, insisting their proposal aligns with existing permissions and an agreed end user, while suggesting there is “increasing uncertainty” around BP’s commitment and funding for H2Teesside.

Reports earlier this year suggested BP could scale back or cancel the 1.2GW project amid offtake challenges.

Although a BP spokesperson told H2 View that H2Teesside remains a nationally significant project, vital to the UK’s hydrogen ambitions and Teesside’s economic growth.

Announced in 2021, H2Teesside aims to produce blue hydrogen from natural gas with carbon capture, and was positioned to contribute 10% of the UK’s 2030 hydrogen target.