THE Hunter is poised to become a centre for energy research under a University of Newcastle plan to establish a $42 million research institute in the old BHP laboratories at Shortland.

The federal government is expected to announce today that the university has won a $30 million Education Investment Fund grant to redevelop and extend the labs.

The project will create 260 jobs during construction and house more than 300 scientists.

Newcastle MP Sharon Grierson said the institute would rival the Hunter Medical Research Institute.

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