Sir Keir Starmer has reportedly quashed plans backed by Ed Miliband for a major green energy plant in the North East.
The PM is said to have overruled the Energy and Net Zero Secretary over plans for BP’s H2Teesside ‘blue’ hydrogen plant.
Blue hydrogen is a clean fuel made through natural gas. The resulting product can be used in electric vehicles with hydrogen fuel cells producing power with no harmful emissions.
Sir Keir is believed to have decided the government will instead back plans for a massive data centre nearby which will be a major net consumer of power rather than generating it.
A letter to Tees Valley mayor Lord Houchen from Business Secretary Peter Kyle – when he was technology secretary – and seen by the Telegraph, says the area will be designated an ‘AI growth zone’.
The data center, Mr Kyle wrote, will become ‘the cornerstone of the UK’s AI strategy’.
A DSIT spokesman said: ‘AI Growth Zones will transform local communities, delivering billions in investment and thousands of new jobs to give working people a real stake in our AI-powered future.
‘There have been more than 200 expressions of interest from across the country to host potential sites, and we’re naturally working closely with many of them, including Redcar, to identify the most promising to take forward.’
The PM is said to have overruled the Energy and Net Zero Secretary over plans for BP’s H2Teesside ‘blue’ hydrogen plant.
Blue hydrogen is a clean fuel made through natural gas. The resulting product can be used in electric vehicles with hydrogen fuel cells producing power with no harmful emissions.
A letter to Tees Valley mayor Lord Houchen from Business Secretary Peter Kyle – when he was technology secretary – says the area will be designated an ‘AI growth zone’.
H2 Teesside aimed to capture and store over 2m tonnes of CO2 per year, which is the equivalent to capturing the emissions from the heating of 1m households.
BP has been ploughing large sums into Teesside as part of a plan to invest £18billion in the UK by 2030.
The project would join BP’s two other planned projects in the area, Net Zero Teesside Power and The Northern Endurance Partnership.
On Monday it was claimed Sir Keir tried and failed to strip Mr Miliband of his Net Zero brief in the reshuffle.
The PM is said to have asked Mr Miliband to take over Angela Rayner‘s housing department as he reshaped his team on Friday.
However, Mr Miliband refused – insisting he wanted to keep overseeing the climate drive.
Sir Keir has pledged a new focus on growth as he tries to get the government back on track amid dire polls.
The premier looks to be tacking to the right with his appointments amid the mounting threat from Nigel Farage and Reform.
Insiders have acknowledged that the Net Zero drive has been holding back activity, while businesses are hoping that reforms to workers’ rights could be delayed or watered down.
New Work and Pensions Secretary Pat McFadden is also set to launch another bid to trim the spiralling benefits bill – after the last effort was humiliatingly killed off by Labour MPs.
Downing Street said the PM is ‘delighted’ that Mr Miliband will continue to lead the energy department, but did not deny Sir Keir had initially suggested moving him.
