A project to build tidal turbines off the coast of Scotland has secured £1.85 million funding from European investors.
Edinburgh-based Nova Innovation and green energy company ELSA from Belgium have teamed up to build the Shetland Tidal Array.
The project comprises five 100kW tidal turbines in the Bluemull Sound site that will power the equivalent of 300 homes.
The array will be developed in two phases with commissioning of the first three devices by the end of 2015.
Scottish Enterprise is supporting Nova Innovation with £1.9 million of grant and loan funding for the project and to help accelerate the company's growth of new projects across Europe.
Energy Minister Fergus Ewing MSP said: "ELSA's decision to invest in Scotland is a testament to the confidence felt by international investors to help develop the huge wave and tidal energy resources from the waters around the Scottish coast.
"The Scottish Government and its agencies will do everything we can to ensure Scotland benefits from the significant economic opportunities the renewables industry presents.
"Scotland's record in attracting international investment is very strong. Last week's Ernst & Young Attractiveness Survey revealed that foreign investment to Scotland in 2013 reached its highest level since 1997."
Nova Innovation will travel to the European Parliament in Brussels next week to showcase its renewables ambitions and seek further backing to support its future plans.
The news comes weeks after Nova Innovation announced the successful deployment of the world's first community owned tidal turbine in Shetland.
Simon Forrest, managing director of Nova Innovation, said: "This partnership agreement will accelerate Nova Innovation's technology development; help secure the company's Scottish manufacturing base and expand the integrated supply chain here in Shetland and Scotland.
"The pan-European vision of the partnership will open up export markets and deliver real growth for the marine energy sector."
Environmentalists welcomed the news.
WWF Scotland director Lang Banks said: "This is yet another vote of confidence in Scotland's marine renewable industry. There's a massive amount of power in our seas and Scotland is well placed to lead the world in developing the technologies to turn this potential into clean, green electricity.
"Alongside energy saving measures, marine renewables will have a big role to play in helping reduce climate emissions as we phase out polluting fossil fuels and nuclear power."
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