SHEFFIELD'S bid to bec-ome a major centre for research and development of eco-friendly fuels could be about to gain a major boost.

Leading players in the fuel cell technology field are being linked with plans to create a multi-million pound Energy Technology Incubator on part of the Sheffield Business Park site, close to Sheffield City Airport.

Work could start on the site within a few months, according to Steve Dore of LIFE-IC, the Sheffield Technology Park-based energy technology transfer and financing specialist behind the project.

"Everybody is champing at the bit to get going," said Mr Dore. "We are going through the final phases. We could be a matter of a couple of months from cutting the first turf." Cambridge-based ITM Power and Coventry-based London Taxis International are among companies whose names have been linked to what it is being hailed as a unique development.

ITM has developed and pat-ented revolutionary fuel cell technology, which it is said will make it one of the UK's leading innovators within the alternative energy sector.

Only a few months ago, the company raised more than GBP10 million through a flotation on the Alternative Investment Market, which valued the company at nearly GBP46 million. ITM admits it is interested in the possibilities offered by the incubator, but hasn't come to a final decision.

However, hopes are high that the company will launch a major research and development operation creating high-tech jobs in the city.

London Taxis International is Britain's premier manufacturer of purpose-built taxis and created the world-famous 'Black Cab'.

Now it is understood to be looking at alternatives to petrol and diesel to fuel future cabs.

The advantages of being close to a cluster of heavyweight alternative energy experts at Sheffield's embryonic incubator could tip the balance on deciding where to site a 60,000 sq ft facility to develop the new taxis.

Others interested in the incubator include a Norwegian firm which has developed a combined heat and power central heating boiler that generates electricity that can be used in the home.

n Backing for the Energy Technology Incubator comes from the European Union-funded Objective 1 regeneration programme and the Carbon Trust.

The incubator will provide space for 40 energy technology businesses in what will be Europe's first "Hydrogen Island", adding in no way to greenhouse gas generation.