Patricia Hewitt

The government has announced the creation of a £50 million fund to boost wave and tidal power.

The announcement comes as a report commissioned by the Scottish executive calls for a significant increase in marine energy in Scotland.

Launching the fund, trade and industry secretary Patricia Hewitt said the UK was well placed to utilise wind and wave power.

Ministers believe the UK can become the industry leader if the technology can be developed over coming years.

"The UK’s wave and tidal flows are the greatest in Europe and I want to ensure we harness these immense natural resources to generate power for the UK," said Hewitt.

"Renewable energy - through wind, wave and other sources - plays a vital part in our fight against climate change, and we are committed to further developing renewable energy to play an increasing role in the UK’s energy mix.

"Today’s announcement reflects that vision and puts us firmly on the path to becoming the world leader in renewable energy."

The new money, which will be administered by the Carbon Trust, will be awarded to bodies which are engaged in alternative research and development and is intended to ensure they bring their products to market.

Scottish plans

The announcement coincides with a study from the Forum for Renewable Energy Development in Scotland, which received the backing of Edinburgh ministers.

Commenting on the new report Lewis Macdonald, Scottish deputy minister for enterprise and lifelong learning, said: "I am delighted that the DTI has responded so positively to the need to support our emerging marine energy sector and we look forward to continuing to work with them to develop this support mechanism."

Scotland is looking to projects such as those already in operation in the Faroe Islands in a bid to provide power to areas such as Orkney and the Western Isles.
 
Tom Delay, chief executive of the Carbon Trust, said the new funding should deliver "a significant boost" to the UK marine sector.

"We are already working with the leading wave and tidal stream companies through our Marine Energy Challenge to accelerate the development of these technologies," he said.

"With the DTI and the Scottish executive we are supporting the world’s first marine test centre in Orkney.

"The next step is to make the UK a global centre of excellence and we look forward to working with the government and the Scottish executive to make this a reality."