The Wave Hub which will sit on the seabed 10 miles off the Cornish coast as part of the Wave Hub project
Work on the world's largest wave farm off the coast of Hayle is to go ahead as planned.
An independent economic impact assessment has calculated the Wave Hub could create 1,800 jobs and inject £560m in the UK economy over 25 years.
Almost 1,000 of these jobs and £332m could be generated in the South West.
During the height of the recession in December 2009 plans for the project had to be dramatically scaled back and the future of the project was in jeopardy.
At the time, David Crisp, managing director of Orecon, said: "We are hearing from the government and everyone what a fantastic economic opportunity renewable is and how we have got to invest in renewables.
"But unfortunately when you're trying to raise money like us there is no money to be had.
"Frustration is the name of the game."
It was feared the scheme could become a victim of the freeze on European funds and the scrapping of the South West Regional Development Agency (RDA).
The South West Regional Development Agency however, said the alternative energy project was approved long before the cuts were announced and that the 42-million pound project won't be delayed by the crackdown on convergence money.
The project will start to be installed off the coast of Hayle in the next couple of weeks. It will provide renewable energy to the National Grid and act as a test bed for pioneering equipment.
The Hub will be connected by an undersea cable and will feed power from four wave energy machines to an electricity sub-station at Hayle on the site of a former power station.
The first wave energy conversion devices are expected to be deployed in 2011.
It's a world first, nobody has done this in this way and it's taken us a number of years to do it, but like anything you do for the first time, it takes a little longer than expected
Jim Price, Head of Procurement
Wave Hub's first customer is Ocean Power Technologies and its PowerBuoy system.
Jim Price, Head of Procurement explains the project, 'The whole wave hub device had been set up to have a number of different technologies operating at the same time.
Jim explains that the Wave Hub is quite a prize for Cornwall, but has had its fair share of challenges:
"It's a world first, nobody has does this in this way and it's taken us a number of years to do it, but like anything you do for the first time, it takes a little longer than expected."
Dr Lars Johanning is from the peninsula research institute for marine renewable energy at Tremough. He explains why wave energy is better than other energy resources. "It's a more steady resource compared to wind because we can predict the energy days ahead."
Stephen Peacock, Executive Director of Enterprise and Innovation at the South West RDA said: "We are determined to see South West England leading the world in the development of wave energy technology and capturing the economic benefits that will flow from it.
A drawing which shows the wave hub in operation
"Wave Hub has the potential to make an enormous contribution to tackling climate change and we believe it could transform the wave technology industry." Take a look at the link below which is an animation of the wave hub in action:
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