Scottish government funding of £3.4 million has been awarded to help build the world’s most powerful floating tidal turbine.

Scottish engineering company Orbital Marine Power has been awarded the money as the first recipient of the Scottish Government’s £10 million Saltire Tidal Energy Challenge Fund.

The funding will be used to deliver the next-generation O2 2MW floating tidal-energy turbine.

Scotland’s energy minister, Paul Wheelhouse, said: “We have established a world lead in marine renewable technologies, and this project represents a significant step forward in technological development.

“We are delighted that this landmark turbine, designed by an innovative Scottish company, will also be built in Scotland.

"We believe that tidal-energy technology can not only play an important role in our own future energy system but also has substantial export potential, and this fund will help move tidal technologies closer to commercial deployment.”

Orbital CEO Andrew Scott said (www.orbitalmarine.com): “We greatly appreciate the Scottish government’s on-going support for tidal-stream energy.

“This funding will enable us to deliver a truly exciting and transformational project and continue the proud tradition of Scottish innovation and engineering.”

The 72m-long O2 will be manufactured by Scottish company Texo Group at its new quayside facilities in Dundee, with key components delivered by Gray Fabrication in Cupar using material from Liberty Steel in Motherwell.