THE North-East moved a step closer in its bid to be the home of a UK energy research centre.

The region was shortlisted as one of three in the running for the Energy Technologies Institute (ETI), a centre of excellence that is expected to attract more than £1bn investment and lead to the creation of thousands of jobs.

The project, which is funded jointly by the Government and private companies including Shell and BP, will help the UK retain its place at the forefront of the global renewable energy market for years into the future.

The North-East consortium, made up of Newcastle, Durham and Northumbria universities, Teesside's Centre for Process Innovation (CPI) and the New and Renewable Energy Centre (Narec) in Blyth, Northumberland, was one of five nationwide to bid for the ETI.

Last night, it was named by the ETI selection panel as one of three to reach the final stages of selection.

The news was welcomed by the North-East consortium, and its main supporters - the regional development agency One NorthEast and the Minister for the North-East, Nick Brown.

Mr Brown said he would continue to champion the bid, adding: "Of all the projects and programmes under way in our region, the ETI bid is the issue which I think should have top priority, and something which I will advocate most to the Government of our country."

The North-East is already at the forefront of the UK energy industry, with more than £6bn of investment being made in the region in recent years, with £100m of further funding planned.

If the region's bid to host the ETI is successful, the research would be based at Newcastle University, with several "spokes" around the country also being created to support the North-East.

The final three will put their cases to the ETI panel at an event in London next month, with a final decision due in the first week of October.

Work on establishing the ETI in its chosen region is expected to get under way before the end of the year.