ATLANTIC Resources has handed defence giant Lockheed Martin a multi-million pound contract to build a 1.5 megawatt turbine for its MeyGen tidal energy project in the Pentland Firth.

The tidal energy specialist said the kit, which is scheduled for delivery next year, will be the largest capacity single rotor turbine ever built.

The contract for the 18-metre rotor diameter AR1500 turbine extends to the manufacture of steel turbine housing, assembly of turbine modules including the gearbox and generator, system integration and quality assurance of the overall turbine delivery programme.

Atlantic, majority owner of the MeyGen project, and Lockheed have committed to using as much content from the Scottish supply chain as possible for the contract.

Tim Cornelius, chief executive of Atlantis Resources, said: "This new multi-million pound contract with Lockheed Martin further develops the strong relationship that exists between the two companies who are at the forefront of tidal power generation.

"Lockheed Martin has been a strong partner and supporter of Atlantis for a number of years and we look forward to continuing to work alongside this global technology giant as we continue to deliver turbine systems for installation on the MeyGen project going forward."

Separately, Atlantis announced that contractors began horizontal directional drilling at the Maygen site in Caithness yesterday. The objective is to create the bores for the cables which will link the onshore site at Ness of Quoys with the four sub-sea turbines, the company said.

Shares in Atlantis Resources closed up 1.25p at 27.5p.