The pilot scheme, known as Neptune, is to be the first of its kind in Scotland, and has attracted GBP650,000 in funding from the devolved Scottish government.

Deputy First Minister Nicol Stephen said: Scotland can be a marine energy powerhouse. Innovation is vital and I am delighted to announce this positive news for energy generation from our costal waters – the first tidal project of its kind in Scotland

The Executive has helped establish the European Marine Energy Centre in Orkney to help develop the sort of innovative and exciting projects like [this].

I am particularly encouraged by the company’s estimate that Neptune has the potential to be commercially viable at a ‘farm scale’ of around 50 turbines. This would provide an impressive output of over 100MW of electricity, subject to a successful outcome from the demonstration project.

This demonstrates that the Scottish marine energy sector can make a real contribution towards meeting and exceeding our renewables targets.

It is hoped that Neptune will be in the water at EMEC by the end of 2007, with testing throughout 2008.