BP has dropped plans to build a major hydrogen plant in Teesside in the latest blow to energy secretary Ed Miliband's net zero targets.

The decision to withdraw the request for permission to build the project comes after in clashed with plans supported by Sir Keir Starmer to create Europe's largest data centre.

A former steel site in Teesside has been selected by the government, as part of that project, to be its second AI Growth Zone.

That project and BP's proposed hydrogen plant were on overlapping plots of land.

A BP spokesman, The TImes reports, said the decision to withdraw the application had "not been taken lightly", highlighting "material changes in circumstances" including the Labour-led local council granting a planning application for the data centre on the land.

The decision has dealt a significant blow to Ed Miliband, who had been banking on the project to help him reach net zero goals.

A Government spokesman told The Times: “This is a decision taken 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.”

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