A national nuclear laboratory is to be based near Preston as part of a £2bn energy masterplan, creating hundreds of new jobs in Lancashire.
The Government's ambitious West Cumbria energy plans, which will transform the coastline into an "energy coast" and provide a new nuclear reactor at Sellafield, will create 16,000 jobs in total.
And Preston is set to benefit from a huge slice of the landmark investment in future energy - with a new research laboratory to be built at the Springfields site in Salwick near the city.
Government Business Secretary John Hutton revealed the proposals on Wednesday.
Mr Hutton said: "The government will be doing all it possibly can to ensure the country as a whole, and local people, enjoy the economic dividends of the switch to nuclear, which is going to happen."
The move is being seen as a vital part of the regeneration of the UK's nuclear industry.
Springfields was the first plant in the world to make nuclear fuel and to date has produced several million fuel elements and provided products and services for over 140 reactors in more than 12 countries.
In November 1999, following the acquisition of Westinghouse by BNFL and their American partners, Morrison Knudsen, Springfields became the UK Fuel Business of the Westinghouse Nuclear Fuel Business Unit.
In Cumbria, the regeneration will also include more money for schools and academies and an acute hospital in West Cumbria.
It is also expected that more cash will be spent on improving transport links and attracting tourists, including a new hotel in Whitehaven.
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