Ed Miliband urged to block Teesworks hydrogen scheme in favour of rival '£100 billion' AI data centre plan

Ben Houchen has urged Ed Milband to block plans for a low-carbon hydrogen facility in Teesside so a rival “£100 billion” AI data centre scheme can go ahead instead.
Tees Valley mayor Lord Houchen has spoken ahead of a looming decision for Energy Secretary and Doncaster MP Mr Miliband on whether to grant a development consent order (DCO) for the construction and operation of a blue hydrogen production facility run by BP and called H2 Teesside. The scheme seeks to produce 10 per cent of the UK’s hydrogen, assisting with the country’s decarbonisation aims.

A decision is due by the end of this month on the plans for the Teesworks brownfield site but Mr Miliband has been warned that allowing it to go ahead would effectively end a rival proposal for a huge artificial intelligence data centre facility at the same location.

Google is among those reported to be in talks about joining the latter project. A planning permission application was submitted in June by Teesworks Limited, the public-private partnership developing the site.

Lord Houchen told the Sunday Times he believes the AI scheme to have far greater economic potential.

He said: “You’ve got north of £100 billion worth of investment in AI on Teesside, or you’ve got a £600 million hydrogen project. You’ve got a scheme that’s going to create a minimum of 4,000 jobs, or you’ve got a hydrogen project that creates 60 jobs.

“With all of this in play … why would you go for one rather than the other? You’re talking about something that’s four times the size of the largest project in America.”