Prime Minister picks AI over energy in blow to plans for a major hydrogen plant

Sir Keir Starmer has overruled Ed Miliband by snubbing plans for a green energy plant in a major blow to the Energy Secretary’s net zero plans. The Telegraph has the story.

The Prime Minister has effectively closed the door on the construction of a major hydrogen project on Teesside – believed to be backed by Mr Miliband – by deciding to endorse a rival tech development near the site, according to correspondence seen by The Telegraph.

The H2Teesside plan, proposed by BP, would have produced so-called “blue” hydrogen that could have provided up to 10pc of the supply Mr Miliband has said Britain would need by 2030.

However, the plan clashes with proposals on nearby land for Europe’s largest data centre – backed by Teesworks, the public-private partnership supported by Tees Valley mayor Lord Houchen.

A letter to Lord Houchen from Peter Kyle, the Business Secretary, confirms that the Government is planning to designate the Teesworks site as an “AI growth zone”, a central plank of the Prime Minister’s plan to make Britain an artificial intelligence hub.

It describes the Teesworks data centre as “the cornerstone of the UK’s AI strategy” and states that Sir Keir’s AI adviser will join a group dedicated to the project.

The decision to designate the site an AI growth zone was made by the AI task force, chaired by Number 10.

“The Government will put its full weight behind Teesworks and Teesside International Airport becoming an AI growth zone,” the letter says, adding that ministers will push major AI companies to invest in the project.

The letter is due to be published by the Planning Inspectorate on Friday as part of a review of the hydrogen project. Last month Mr Miliband delayed a decision on it until the end of October “to allow time to request further information”.

The data centre and hydrogen plant projects are on overlapping plots of land and planning documents have stated that they are incompatible.

Read the full story here.