Manchester's second world-class graphene hub has got the go-ahead, the Chancellor will announce today – in a mammoth £60m boost to the city.

George Osborne will unveil plans for the cutting-edge centre in a visit toManchester university, birthplace of the so-called ‘wonder material’.

He will welcome it as the latest phase in a masterplan to create a ‘northern powerhouse’ fuelled by high-tech scientific research.

Half the funding will come from Abu Dhabi investors Masdar, the second huge raft of investment from the Middle Eastern city this summer.

The rest will come from the government and the university itself, which is expected to tap into European funding.

When complete the Graphene Engineering Innovation Centre will complement the university’s National Graphene Institute – which was granted funding in 2012 and is nearing completion.

It will fast-track development of graphene-based products so they can be marketed.

Mr Osborne said: “Scientific innovation is at the heart of our long term economic plan and this investment shows we are delivering.

“Graphene is potentially a game-changer – its properties make it one of the most important commercial scientific breakthroughs in recent memory. It presents tremendous opportunities with the potential to provide thousands of jobs of billions of pounds of further investment.

“This new centre, alongside the National Graphene Institute, has put Manchester and the UK in pole position to take advantage of these opportunities and lead the world in this exciting new technology.”

Graphene was discovered by Manchester university physicists Sir Kostya Novoselov and Sir Andre Geim in 2004. At one atom thick, the immensely strong, versatile substance has been hailed as a ‘miracle material’.

Sir Kostya said today’s announcement was a ‘critical step’ in ensuring new British ideas can be used to fuel the economy.

“It will serve as one of the keystones in supporting science, technology and innovation in the UK,” he added.

The £30m investment from Masdar follows June’s £1bn deal between the council and Manchester City owners Abu Dhabi United, which will see 6,000 new homes built in Ancoats and New Islington in the next decade.

Mr Osborne will also announce plans for a new national institute for materials research in the north, potentially to be signed off in this year’s Autumn Statement.