Six universities in the Midlands will take part in a new £60 million energy research programme following confirmation in today's Budget.
Chancellor George Osborne gave the go ahead for the investment into the Energy Research Accelerator (ERA) to be carried out by universities in Warwick, Birmingham, Aston, Nottingham, Loughborough and Leicester.
The ERA is a hub which will build on the expertise of these universities, the British Geological Survey and the surrounding industrial base to deliver a step change in energy R&D.
In addition, the Chancellor announced in the Budget that the 'Energy Systems Catapult' would be based in Birmingham.
The initiative will enable innovators to pursue commercial opportunities for new, technology-based products and services which address the need for sustainable, affordable and secure energy.
The University of Warwick's vice-chancellor Sir Nigel Thrift said: "The global energy storage market will rise to $50 billion (£34 billion) by 2020 and much of the rise will be in transportation to $21 billion (£14 billion).
"Automotive is well on its way to displacing consumer electronics as the biggest user of energy storage. The ERA initiative will play a crucial role bringing together researchers and industry to meet that challenge.
"It will enable the University of Warwick to create a national low carbon mobility centre, serving the automotive, commercial and off road, marine and rail sectors by the development of enabling technologies in energy storage and energy machines, drives and systems."
The ERA will build upon the power of advanced manufacturing, multi-disciplinary research and industry expertise within the Midlands region and the leadership of the so-called 'M5' group of universities by supporting its regional industrial base.
It will develop new ways to reduce energy costs in manufacturing, adding competitive advantage to the UK in today's global markets and will catalyse new research to secure the UK's international lead in new energy technologies.
Aston University is also carrying out its own '5BIO' project, as part of the ERA, which is aiming to allow the UK to develop stronger access to the alternative energy market.
5BIO has been set up to tackle the challenge of developing low carbon energy, combating climate change and creating new businesses and jobs in the Midlands and new exports for the UK.
Dame Julia King, vice-chancellor of Aston University, said: "The opportunities for the creation of an internationally leading research and development institute for low carbon thermal technologies based around biomass, bioenergy, biofuels and biorefineries is enormous.
"It will empower the region and allow Aston and other Midlands universities to take a global leadership position in the new high growth strategic market of low carbon energy and renewable chemicals."
The ERA will also draws on the University of Birmingham's expertise in energy research and in particular thermal energy technology and its relationships with industry.
Vice-chancellor Sir David Eastwood said: "We are delighted that the University of Birmingham will lead on the thermal energy technology strand, building on its research expertise in this area and look forward to the consortium building further on its strengths.
"The announcement confirms the Government's recognition of the vital role of the Midland's science and manufacturing base not only in terms pushing the boundaries of knowledge and exploiting new technologies that address the energy and climate challenges but in delivering long term economic benefits to the UK."
