New funding means UK could get first tidal farm within two years

MCT has already installed the world's first, single commercial-scale tidal stream turbine, the 1.2 megawatt SeaGen, in Strangford Lough in Northern Ireland. The device is now operating remotely and generating power that is being sold to the grid.

The company has now secured £3.5 million of support from the Carbon Trust, which it is going to use to help fund the deployment of a commercial-scale tidal system off UK shores within the next two years.

"Marine Current Turbines has developed one of the leading tidal energy devices and its proven technology is now ready to be deployed in a commercial-scale tidal farm which will be a UK first," said Tom Delay, chief executive, of the Carbon Trust. "We're delighted to be able to lead this important group of investors in providing funding to a key player in the UK's growing marine energy sector."

MCT said the money raised would also help the company export its technology abroad.

"We have established clear water ahead of our rivals and we see this significant investment, allied by the Government's actions to encourage tidal and wave energy, giving the company a massive boost to realise the commercial opportunities that exist in the UK as well as overseas markets," said Martin Wright, managing director of MCT.

Carbon Trust Investments Limited led the investor group, which included EDF Energy, Bank Invest and High Tide.

It follows a series of recent investment in other UK renewable companies, including Whitfield Solar and New Earth, and is drawn from a new £18 million fund, provided by the Department of Energy and Climate Change, announced by the Carbon Trust last month. The new fund is designed to speed up Britain's move towards a low carbon economy by providing promising UK clean energy sector companies with investment over the next 12 to 18 months.