Wavegen will receive £2.1 million to harness wave energy from a prototype, building on their experience with the world's first commercial wave power machine on the Isle of Islay.

THGL, who operate in Pembrokeshire in west Wales, will receive £1.6 million to develop and test technology to generate power in areas of fast tidal flow.

"Wave and tidal power have huge potential to supply a significant proportion of the country's future energy needs," said Energy Minister Brian Wilson said in a statement.