The financing – £7.6m from private backers Norway's Fred Olsen, oil major Total and new investor partner ABB Technology Ventures (ABB-TV) – will underpin design, construction, installation and testing of the Orkney company’s commercial-scale SR2000, which is scheduled for completion in spring 2014.

STP’s 2MW machine, which is based on its grid-connected 250kW prototype currently ongoing at the European Marine Energy Centre (Emec) Fall of Warness test site, is expected to be used for the 30MW Lashy Sound project off Orkney, which was awarded an agreement for lease by the Crown Estate in November.

“It