Scotland has a quarter of Europe's potential tidal power
An Orkney-based marine energy firm has been given £8m by the UK Government.
The money is to help the European Marine Energy Centre (Emec) expand and help reduce UK carbon emissions from fossil fuels.
The UK Government, which has announced similar funding packages in England, has set a target to reduce carbon emissions by 34% by 2020.
The Scottish Government last month set its own target to reduce emissions by 42% by the same time.
Both administrations have said they aim to cut emissions by 80% in 2050.
Announcing the funding for Emec, Jim Murphy, the secretary of state for Scotland, said: "Scotland is surrounded by the sea and swept by the winds. We have a quarter of Europe's entire potential tidal power.
"Scotland is perfect for wave and wind power and that is why the British Government is making this crucial investment today."
Jim Murphy announced the extra funding at the Pelamis headquarters in Edinburgh
Mr Murphy was speaking at the Pelamis Wave Power headquarters in the Leith area of Edinburgh, where pioneering technology has been used to generate energy at the Orkney centre.
Pelamis is working on the next generation of its unique wave-power generators for Orkney next year.
Mr Murphy said work at Pelamis, on the Forth estuary, will inspire advances in renewable technology.
He added: "Clever people are using cutting-edge technology with traditional Scottish heavy engineering to be world leaders.
"The investment today will enable expansion in Orkney so that other Scottish businesses, with ingenuity and innovation, can make sure that Scotland and Britain is the best place to develop technology."
Emec opened in 2004 as the world's first facility for testing wave and tidal power.
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