A Graphene Engineering Innovation Centre is to be built at the University of Manchester to complement the existing UK National Graphene Institute. The centre will receive £15 million from the UK Research Partnership Investment Fund, £5 million from Innovate UK and £30 million from Abu Dhabi renewable-energy group Masdar.

Announcing the new centre during a visit to the city, Chancellor of the Exchequer George Osborne said: “Graphene is potentially a ‘game-changer’; its properties make it one of the most important commercial scientific breakthroughs in recent memory.

“This new centre, alongside the National Graphene Institute, will put Manchester and the UK in pole position to take advantage of these opportunities and lead the world in this exciting new technology.”

Sir Richard Leese, the leader of Manchester City Council, said the news was “another compelling illustration of our ability to attract international investment. Not only does it underline the University of Manchester’s world-class credentials, but it also reinforces our place at the leading edge of advanced material research.

“This announcement is another manifestation of Abu Dhabi’s commitment to working with Manchester and the network of constructive relationships that have been built up over the last five years. Manchester is where graphene was first discovered, and it is genuinely exciting that the city will be in the forefront of work into its commercial applications.”

During his visit, Mr Osborne also announced that the Government’s chief scientific adviser has set out proposals for a new National Institute for Materials Research and Innovation in the North. Mark Walport has been considering options for a centre since June.

The final decision about whether to proceed with the centre will be revealed in the Autumn Statement.