The facility will feature four laboratories to research fields such as geothermal energy and hydrogen-fuelled cars, while also furthering an $239.5m collaboration with other Midlands region universities.

University of Nottingham has started building a £5.4m ($7.2m) laboratory complex aimed at generating UK-based spinouts in the new energy sector.

The Research Acceleration and Demonstration (Rad) block will support researchers and companies looking to manufacture energy-saving products. It is due to launch in March 2018.

There will be four Rad laboratories, each tailored for specific research fields such as geothermal energy and hydrogen-fuelled cars, and including one unit built over three floors to host the tall burners of a replica power station.

Rad will research projects backed by the £180m Energy Research Accelerator (Era), a funding partnership of six Midlands universities and the geoscience-focused British Geological Survey aimed at commercialising more efficient energy systems.

Seamus Garvey, director of the Gas Turbine Transmission Systems department within the university’s Rolls-Royce University Technology Centre, said: “It is a question of what happens if we do not do some of this stuff.

“The electricity system will get a lot more expensive and inflexible.

“We will not be able to have a cup of tea or turn on the washing machine or cooker when we want, or it will be more expensive at certain times of the day.

“One of the labs will help us to develop a generation of hydrogen-powered cars. The electric car is superb for short-range journeys but to do 300 miles it is very expensive, so we think hydrogen has a place.”