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
UK airport passengers have to walk up to a kilometer from check-in desks to reach their departure gates, new research has shown.
In an annual survey taken among local authorities in the UK, 2,463 stray dogs were put to sleep between April 2015 and March 2016.
Inspectors found the availability of drugs at HMP Bedford was having a "serious impact" on safety.