THOUSANDS of jobs could be created in the North-East if the region is chosen as the UK's energy hub in a project that would be worth £1bn over ten years.

The Energy Technologies Institute (ETI) wants to establish an energy centre to research all forms of energy - except nuclear power - to help the UK maintain its place at the front of the global market.

The North-East is among five regions nationally shortlisted to become the energy centre, which will be jointly-funded by the Government and private sector companies, including Shell, EDF Energy and BP.

A consortium has been set up to organise the region's bid.

The North-East ETI Consortium - comprising Newcastle, Durham and Northumbria universities, the Centre for Process Innovation in Wilton, on Teesside, and the New and Renewable Energy Centre, in Blyth, Northumberland - is now preparing to put its final case to the Government next month.

Professor Paul Younger, the consortium's co-ordinator, said winning the ETI project would bring employment and huge prestige to the region. This is a very strong region for energy, with biofuels and geothermals in the Tees Valley and in Northumberland, and it has a strong history of being so.

"We see the North-East as an ideal site for this project.

"It's certain that if this was to happen, both in terms of the growth in the region's research capacity and in the growth of the industry, and the variety of energy companies we have, we would see the creation of jobs - that would be hundreds, although more probably thousands.

"This could see a massive growth of industry here, and it would be a huge selling point for firms in this region to say they were part of the UK's ETI centre.

"All partners in the consortium are confident the strength of our region's existing industry will be a strong selling point for us."

The five short-listed sites will put their bids to the ETI panel next month, with a final decision expected in early September.