The Energy Technologies Institute (ETI), based at Loughborough University, which aims to develop ways to cut carbon dioxide emissions and deliver more efficient energy was announced by the government.

It will receive £550m from the government over five years, along with matched funding from the private sector. Besides Loughborough, Birmingham and Nottingham Universities are part of the consortium. Headed up by Rolls Royce’s head of technology strategy David Clarke, other companies include BP, Caterpillar, EDF Energy, E.ON and Shell.

Innovation Secretary John Denham said: "The Institute will deliver solutions to help make the energy in our homes and businesses safer, cheaper and more sustainable in the future."