The government has launched a £20 million competition in Tees Valley for the use of hydrogen in new transport projects.

Innovate UK is running the competition, which will see businesses and research groups bid for the cash based on their ideas for how hydrogen can be used as a renewable fuel source.

Large-scale refueling stations for public buses and coaches, growing the supply chain and developing more efficient systems for hydrogen trucks are the key areas of concentration for the competition.

Alongside the £20 million available for innovations, £300,000 is being provided to train new employees and develop a workforce that will help with hydrogen technologies specifically.

Transport Secretary Anne-Marie Trevelyan said: “Climate change is one of the biggest challenges this generation faces, and with transport contributing 24% to the UK’s carbon levels, we are working hard to change things now and for the future.

“Tees Valley continues to be the beacon for hydrogen technologies and will be further supported by £20 million going to the best and the brightest ideas that will create a world-leading industry with more skilled jobs in the heart of the north of England.”