A ￡1.4 million EU funding boost is to go towards a feasibility study to develop DeltaStream technology in Wales.
The study will assess the suitability of a site in West Wales for tidal stream testing.
The company behind the technology, Tidal Energy Limited, will also be able to carry out site surveys, environmental assessments and design work at the proposed demonstration site at Ramsey Sound, Pembrokeshire.
The demonstration project will last for 12 months, during which it will provide a sustainable source of electricity to the people of St Davids.
It is expected that the funding will lead to the deployment of a full-scale prototype device in 2011.
The technology will be assembled at a local quay and lowered to the seabed following connection to a subsea cable. Once installed it has a generating capacity of 1.2MW and has been specifically designed to be sensitive to the local environment.
The study will be backed with ￡572,000 from the European Regional Development Fund through the Welsh Assembly Government.
Environment Minister, Jane Davidson said: "I am delighted that this innovative offshore project will be the first of its kind in Wales, demonstrating how Wales can lead the way in our commitment to produce clean, renewable energy for the benefit of our communities and, in turn, tackle climate change."
Further information:
Welsh Assembly Government
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