The team working on Aberdeen's proposed offshore windfarm has said the fact the European Commission is considering investing 40 million euros is a boost.
It is a joint venture between Aberdeen Renewable Energy Group (AREG) and Swedish utility company Vattenfall.
The joint venture partners said they believed it was the potential of becoming a European test centre that may influence the funding.
AREG chairman Jeremy Cresswell: "This is great news".
The proposed windfarm could involve 23 turbines between one and three miles out to sea stretching about three miles from the Bridge of Don to Blackdog beach.
Mr Cresswell said: "Being considered for European funding on this scale for an energy project is a fabulous opportunity for this region.
"Coupled with the potential for this project to become a European test centre, benefiting local businesses and attracting new players into the region, this funding announcement puts Aberdeen in pole position as a UK renewable energy hub."
Anders Dahl, head of Vattenfall Wind Power, said: "We welcome the EU proposal to consider funding and look forward to continue working with stakeholders to explore the best way of taking the project forwards."
Aberdeen City Council also welcomed the announcement.