WITH two renewables energy projects in Scotland winning official backing yesterday it may seem contrary to focus on one that did not.

However, the fact Atlantis Resources failed in its application for support under the renewables subsidy scheme while an offshore windfarm and biomass power plant in Scotland got the nod may concern some in the country.

After two Scots wave energy pioneers went into administration in quick succession, the experience of Atlantis suggests it may be some time before the challenge of developing a commercially way of harnessing the force of the sea is met.

Atlantis wants to extend the facility it has developed for using turbines to generate power from the tides in the Pentland Firth, which industry body Scottish Renewables reckons is world leading.

But officials have decided taxpayers could get better value by supporting renewables schemes that generate power more cheaply, including three offshore windfarms.

Atlantis believes the costs of tidal energy will fall just as those associated with offshore wind have but it faces a Catch 22.

The company may need to build a facility with tens of turbines to achieve the scale economies needed to cut generating costs sufficiently to win backing in the UK. But it may not be able to build a facility of the size needed without official backing.

While ministers ponder that conundrum, Atlantis intends to focus activity in countries where it expects to get a better response, such as France.