Contract helps city company rule the waves

Secretary of State for Energy and Climate Change Chris Huhne has welcomed a £3 million marine renewable energy contract between an Edinburgh-based wave energy firm and a drilling specialist.

The contract is to install a foundation system for Aquamarine Power's next-generation wave device Oyster 2, which will be installed by Fugro Seacore in Orkney this summer.

City firm Aquamarine Power will install a single Oyster 2 device this summer, with a further two devices to be put in place in 2012. Together the three devices will form a 2.4MW array.

Mr Huhne said: "Our island has a tremendous marine energy resource and we already have a lead in the technology. Now the challenge is to see it deployed commercially.

"As we face oil prices beyond $100 a barrel and the clearest evidence yet of the physical dangers to the UK of man-made climate change, innovations such as the Oyster are the sure-fire insurance policy with a big economic dividend."

The development comes after the announcement in December of 11 million new investment in Aquamarine Power.