A national nuclear laboratory will be established as part of a £2bn regeneration scheme to transform west Cumbria into Britain's "energy coast", John Hutton, the business secretary, announced yesterday. The government-owned centre will be run by a commercial operator and focus on research and development, including more secure and sustainable methods of waste disposal.

The announcement was made as Mr Hutton visited Sellafield to launch a "West Cumbria Masterplan" to create 16,000 jobs and inject £800m into the local economy. The scheme encompasses onshore and offshore wind farms but the government hopes the centrepiece will be a new nuclear reactor at Sellafield. No companies have yet come forward with plans to build a plant.