Business Secretary Vince Cable says the north east will be at the centre of a new plan based around industrial development.
David Clarke, Chief Executive of Energy Technology Institute, has told Tyne Tees he thinks offshorewind and automobiles are the two industries that can drive the North East economy, with more research.
A vehicle like this takes 355 litres of diesel and uses 22 litres an hour.So the target of 30% more efficiency would make a big difference.
Business Secretary Vince Cable has arrived at the Caterpillar factory in Peterlee
The Business Secretary is expected to arrive in the next few minutes at Caterpillar in Peterlee, County Durham to confirm £3m in research money for the company.
It is part of a £40m fund that Vince Cable is launching, to help businesses make heavy duty vehicles more efficient.
The Business Secretary Vince Cable will show his support for a new research project in County Durham. He is due to visit the Caterpillar factory in Peterlee, which will receive a share of £40m.
Researchers at the plant will look at energy efficiency in heavy goods vehicles, and hope eventually to build and sell a new, cleaner engine for big vehicles.