An "extreme" engineering centre will be built to help develop deep sea technology.
The £7 million Neptune National Centre will be created on the River Tyne in Newcastle.
Unveiling the centre as as part of a new oil and gas strategy, Business Secretary Vince Cable said: "This cutting-edge new facility will help put our academic community and industry at the centre of subsea and offshore engineering research."
Newcastle University will help provide funds of try scheme as a centrepiece for economic revival.
More top news
Katie Price has defended using the n-word on live television after saying it twice on This Morning.
The 'obsessive and manipulative' stalker who cut his ex-girlfriend's throat as deep as her spine has been jailed for life.
A source close to the Labour leader ruled out his participation in any head-to-head debates which do not involve the Prime Minister.