Ed Miliband's hopes for net zero have taken a major hit as BP decided to cancel plans for a huge hydrogen plant. It is understood that the oil company has withdrawn its application to build H2Teeside, announced in 2021, which would have created enough energy to power a million homes.

The Energy Secretary had already delayed his decision to grant a development consent order (DCO) twice after BP made its first application in March 2024. Now it appears BP has revoked its application altogether, ahead of the deadline for a decision on December 4.

The project had been marred by controversy after the landowners of the Redcar site, South Tees Group (STG), sought permission to build a massive AI data centre there instead.

The Department for Energy Security and Net Zero (DESNZ) told the BBC that the decision had been made by BP.

"We continue to provide a route for hydrogen projects in Teesside, including Tees Green Hydrogen, which is moving towards final investment decision, along with several other projects creating high-quality jobs for the region," a spokesperson said.

It was thought that the 1.2-gigawatt project would have delivered 10% of the energy to reach a clean energy system by 2030, by producing 'blue' hydrogen from natural gas. BP said the development would have created up to 1,300 jobs.

A BP spokesperson said: "We continue to move forward with other projects on Teesside, including our investments in Net Zero Teesside Power and the Northern Endurance Partnership, and remain an active partner in the region."

If Ed Miliband had granted the DCO, the oil and gas company would have been given permission to go ahead with the project and compulsorily purchase the land.

When Teesworks Ltd went against the plans, BP previously said it was willing to have discussions to find a solution "that would enable both developments to co-exist".