Teesside can be heart of UK tech, mayor says

2 December 2025

Jason Arunn MurugesuNorth East and Cumbria

News image — BP and landowners South Tees Group had competing plans for part of the former Redcar Steelworks site

Teesworks An aerial view of Teesworks. An industrial estate can be seen to the bottom left while a large amound of undeveloped land is in the centre of the screen. The River Tees can be seen at the top of the picture. — BP and landowners South Tees Group had competing plans for part of the former Redcar Steelworks site

Tees Valley Mayor Ben Houchen has said the news that BP is no longer seeking to build a hydrogen plant on land earmarked for an AI data centre will help to put the area "at the heart" of the UK's tech industry.

The fuel giant pulled out of plans for the plant at Teesworks in Redcar following a row over whether the site would be better suited to housing a data centre.

It cited a "material change in circumstances" to the land the plant had been due to be built on formed part of its decision to withdraw.

Houchen said it cleared the way to build an AI data centre, which he claimed would "create more long-term jobs, attract more investment and deliver greater future-proof growth".

But hydrogen expert Prof Sara Walker, who co-directs the Birmingham Energy Institute, said BP's decision to drop the hydrogen plant was "disappointing".

"The potential land use for a data centre does not contribute to the industrial decarbonisation journey and contributes to growth in energy demand on the site at Teesside," she said.

BP's project, H2Teesside, was promoted as a major contributor to plans for Teesside to be a green energy trailblazer, until the landowners South Tees Group (STG) sought permission to build a data centre instead.

Houchen said he would continue to work with the BP on Net Zero Teesside (NZT), a gas-fired power station with hopes for carbon capture and storage capability.

BP An illustrative image showing how the hydrogen facility could look, including industrial towers and metal piping. — H2Teesside would have been one of the largest blue hydrogen plants in the UK, BP said

Houchen said the authority had a responsibility to make sure the Teesworks site was being used to "deliver the biggest possible benefit for local people".

He said: "BP's hydrogen project faced a number of challenges, and while I know this won't have been an easy decision, I welcome their pragmatism."

The mayor said land on the former steelworks site was "limited" and "investor interest is high".

"This is absolutely the right move for Teesside."

Teesworks is run as a joint venture between the publicly owned and funded South Tees Development Corporation, led by the Tees Valley Combined Authority (TVCA), and Teesside businessmen Martin Corney and Chris Musgrave.

The men initially owned 50% of the shares in Teesworks, but that increased to 90% in 2021 with the remaining 10% staying in public hands.