Multi-million pound research work to develop the next generation of green buses and lorries will be based at the Michelin Scotland Innovation Parc (MSIP) in Dundee.
The LOCATE facility will become part of the former tyre factory site after receiving £4m in Scottish Government funding.
The site will specialise in making sustainable heavy-duty vehicles more efficient as government, business and universities collaborate to decarbonise the transport system.
Sarah Petrie, Innovation Director, MSIP, said: “The decision for LOCATE to be based at Michelin Scotland Innovation Parc demonstrates the strength of what we offer.
“This project demonstrates strong partnership working to deliver a future-thinking facility with purpose.
“That is what MSIP is all about. We welcome this investment and look forward to seeing what LOCATE will achieve.”
The announcement follows news that hydrogen technology company Arcola Energy will create 130 jobs in the city after receiving £1.5m from Scottish Enterprise.
Sarah added: “As well as providing excellent physical infrastructure, MSIP is and will be home to many companies developing technology in this industry.
“The LOCATE facility will align with those companies and our Innovation Campus to create practical collaboration between industry and academia in a physical space.”
The Scottish Government is developing the project in partnership with specialist centres at Strathclyde and St Andrews universities.
Experts at the facility will look to improve the drive chain on hydrogen fuel cell and battery powered lorries, buses and other large freight carrying vehicles.
John Irvine, chair of the Hydrogen Accelerator at St Andrews University, said:
“We are delighted to be leading on the development of the LOCATE facility to support the Scottish Government’s climate change targets.”
The Scottish Government is investing at total of £7 million across two innovation projects, the second being based in Glasgow.
Scottish Government transport secretary Michael Matheson said they were strengthening their collaborative work to drive carbon emissions down to zero.
He said: “Working across government, industry and academia, I want to see Scotland at the forefront of the revolution in zero-emission mobility.
“This action supports our world-leading climate targets as we work to eliminate transport emissions – but also helps us secure the benefits for Scottish businesses and industry in being the first to transition to a net-zero economy.
“We need no reminders of Scotland’s rich history when it comes to invention and new ideas.
“Through close partnerships, we’re enabling cutting edge innovation that responds to the climate emergency by building exciting clusters of innovation and collaboration.
“I’m excited to see this important work continue at pace and look forward to the results which will follow.”