Scotland, north-east England and the Midlands have been shortlisted for the headquarters of the government’s proposed £1bn Energy Technologies Institute.

The institute is expected to act as the focus of low carbon energy research and development in the UK.

The government has pledged up to £500m in investment over 10 years, to match private-sector partners.

So far, bp, Eon, Shell, EDF Energy, Rolls-Royce and Caterpillar have each committed to provide up to £5m a year. A north-west England consortium and Sheffield failed to make the final.

The final decision on the institute’s location will be announced later next month.