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'.
