The two centres will help the UK take a world lead in "smart" transport and zero emission vehicle technologies by bringing together key stakeholders such as Government, manufacturers and academia in developing new technology.

The first centre of excellence to be established is Fuel Cell and Low Carbon Technologies and will be in based in Loughborough.

Hybrid vehicle systems have already established a foothold in car markets across the globe, delivering improved fuel efficiency while fuel cell vehicles are set to reduce reliance on fossil fuels.

Jacqui Smith said:

"The Government is determined to tackle congestion and global warming through promoting technology and innovation, and these two centres will go a long way in achieving this.

"By making better use of our road network, these centres could play a key role in reducing congestion on Britain's motorways and improving the environment.

"And we are also sending a strong signal to manufacturers around the world that the UK is the place to come to carry out research in cutting-edge areas."

The second centre, new "roadsmart" Intelligent Transport System (ITS) technologies will be developed at the new centre for Transport Telematics and Technologies for Sustainable Mobility.

ITS use information and telecoms technologies to tackle road congestion, safety, transport inefficiency and poor route use. Recent Telematics projects in Europe have cut road journey times, improved traffic information accuracy, reduced traffic accidents and increased motorway capacities.

The new centres were set up in response to recommendations made by the Automotive Innovation and Growth Team (AIGT) which committed GBP45 million to the automotive industry.

Notes to Editors

1. Phil Pettitt, Manager for ITS at QinetiQ is launch director of the Transport Telematics for Sustainable Mobility centre of excellence.

Geoff Callow, MD of TEC ltd is launch director of the Low Carbon and Fuel Cell Technologies Centre.

2. The location for the Transport Telematics and Technologies for Sustainable Mobility is due to be announced in early 2005.

3. Both centres are receiving DTI funding as part of Government business support and innovation activity. They aim for self-sustainability within three to five years as they develop their services.

4. The DTI has commissioned technology transfer consultancy Beta Technology to project manage the initial launch of the two centres in support of the launch Directors. Beta's previous experience of such a role includes the launch of the Rotherham-based National Metals Technology Centre.

Media Contacts: ITS Centre of Excellence Phil Pettitt, Launch Director 01684 895714 or email pipettitt@QinetiQ.com

Low Carbon and Fuel Cells Centre of Excellence Geoff Callow, Launch Director, 07771 674 062 or email geoff.callow@turquoiseassociates.com

Beta Technology Ltd Richard Wrigley, Director Consultancy Services 01302 322633 or email: rwrigley@betatechnology.co.uk