The project is planned to be developed in two phases in the Inner Sound of the Pentland Firth, between mainland Scotland and Orkney.
The new funding will be used by Atlantis for the development of MeyGen Phase 1B, which also known as Project Stroma.
EC initially granted the funding to Marine Current Turbines (MCT)’s tidal stream array project, Kyle Rhea, proposed between the Isle of Skye and the west coast of Scotland.
MCT, however, was acquired by Atlantis from Siemens in July, following which the latter applied to the EC permit to transfer the funding to Project Stroma.
Atlantis’s MeyGen project said to be the world’s largest tidal stream energy project. Construction of the Project Stroma is due to commence during 2016 following reaching financial close.
Atlantis is currently undertaking the construction of first phase of the project, MeyGen Phase 1A, with planned completion in 2016.
Atlantis CEO Tim Cornelius said: "The Phase 1B funding announced today will accelerate the rate of development at the MeyGen site and we expect to commence construction of Project Stroma before the end of 2016.
"These developments further underline the benefits of the MCT acquisition.
"The EC’s continued support for tidal power via the MeyGen and the Sound of Islay projects underlines Scotland’s position as the world’s leading tidal power region and reflects the strong support the industry has received from the Scottish government."
Power generated from the project will be sold to independent energy firm SmartestEnergy under a 10-year power purchase agreement (PPA).
