BP Building

Net Zero Teesside

with

Chinese Steel

Teesworks, Getehouse, Redcar

Scott Hunter

19 January 2026

The Daily Telegraph reports today that BP is being summoned by Government ministers to explain why a contract for steel to build the Net Zero Teesside plant has been awarded to Chinese steelmaker Modern Heavy Industries.

Tees Valley mayor is up in arms about the contract award, as detailed in the Telegraph's report, but, is powerless to directly influence the decision.

Stockton North MP, and industry minister, Chris McDonald, is equally outraged by the decision, announced over the weekend, saying that he expects projects like this, partly taxpayer funded, to be completed using British-made steel.  He will be holding emergency talks with the company.

The Telegraph helpfully explains the reason for the award as

 "The company was awarded the deal because it can produce green steel using electric furnaces. Britain currently does not have commercial-scale green steel production."

Is the British steel industry just lagging behind, we wonder?  The article observes that, while Chinese steel is being used in the construction of the power plant, the carbon capture facility has been awarded French company, Technip.



As for taxpayers, we can add that the remediation of the land has been paid for with public money via the South Tees Development Corporation.  Teesworks which has a 90% shareholding on the site, does not pay for remediation.  It will, on the other hand, benefit financially from the leasing of the NZT site to the BP consortium.