Ed Miliband urged to block Teesworks hydrogen scheme in favour of rival ‘£100 billion’ AI data centre plan
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.”
The situation is reported to be causing divisions within Government.
In April, then Technology Secretary Peter Kyle, who has since become Business Secretary, sent Lord Houchen a three-page letter backing the idea of Teesworks becoming a “world-class AI hub”.
Mr Kyle wrote: “We both want to see Teesside leading the AI industrial revolution within the UK. My officials have worked closely with you and your colleagues to ensure the Teesworks site along with Teesside International Airport has sufficient access to all relevant utilities for delivering one of Europe’s largest data centres.
Last month, Michael Shanks, a minister in Mr Miliband’s department, wrote his own letter to Lord Houchen, said:
Through continued collaboration there is an even greater opportunity to seize.
“One that would position Teesside as the cornerstone of the UK’s AI strategy, boosting our technological sovereignity and supporting long-term economic transformation in the region. Teesworks appears well-placed to play this role – with ample land, power and water available today and potential for more in the near future.”
He said:
While I cannot comment on the specifics of the DCO application, I want to be clear about the Government’s wider priorities.
We remain firmly committed to both… rolling out AI Growth Zones and expanding carbon capture, usage and storage networks and low carbon hydrogen. These are nationally significant priorities that underpin our growth agenda and our mission to make the UK a clean energy superpower.
“H2 Teesside is one of several projects currently in negotiation with Government. Like others, it has the potential to contribute to our CCUS and hydrogen ambitions, but as with all projects, progression to a final investment decision will depend on a full assessment of value for money and affordability, to ensure it delivers value for money for taxpayers and bill payers.”
In regards to blue hydrogen projects in general, Mr Miliband said last year that “we need all the technologies at our disposal on this decarbonisation journey”.
A government spokesperson said:
Any infrastructure decision this government makes will be in the national interest – helping deliver the Government’s Plan for Change.
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Ed Miliband urged to block Teesworks hydrogen scheme in favour of rival ‘£100 billion’ AI data centre plan, source
