A government decision on whether a hydrogen plant can be built has been delayed for a second time amid a row over the land which is also wanted for an artificial intelligence (AI) data centre.

Energy company BP sought a development consent order, which is required for nationally significant infrastructure projects, for the Teesworks site in Redcar.

The deadline for a decision had been Thursday, but the government extended this to 4 December to “allow time to consider the information further”, the Department for Energy Security and Net Zero (DESNZ) said.

BP acknowledged the delay while Teesworks Ltd, which wants to build the data centre, said it recognised “thorough consideration” was needed.

DESNZ said its decision would be made in the “national interest”.

If the hydrogen plant is approved, BP would be given the power to compulsorily purchase the land it needs.

But Teesworks Ltd wants to build a giant AI data centre on the site instead and received planning permission from Redcar and Cleveland Borough Council in August.

The data centre would be housed on a specific patch of land BP has already earmarked for its blue hydrogen plant, H2Teesside.

BP previously said it was willing to have discussions aimed at finding a solution “that would enable both developments to co-exist”.

Teesworks Ltd chairman Chris Musgrave said: “While the government has deferred its decision on BP’s Development Consent Order for H2Teesside, we recognise that major projects of this scale require thorough consideration and due process.”

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 two Teesside businessmen, Martin Corney and Mr 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.

The initial deadline for the DCO decision was 28 August.