ScottishPower has announced a £10M wave power project off the coast of Scotland.

Four floating generators, designed to convert wave movement into electricity, will be moored off the European Marine Test Centre (EMTC) in Orkney, in what is to become the world's biggest commercial wave farm.

The EMTC at Orkney aims to become a leading ocean power research facility, drawing to it technologies from around the world through a new grant program. See Scotland jockeying to become a leader in marine power.

Due to be operating by 2008, the 160-meter Pelamis machines will provide around 3MW of green electricity, enough to power around 2,000 homes. A test prototype has already been taken to Orkney from its manufacturer Ocean Power Delivery.

ScottishPower's Director of Renewables, Keith Anderson, said: "This is a massive step forward. It will be a test of the actual devices that will be used commercially and, if successful, should help propel Scotland into the forefront of marine energy throughout the world. Designed and constructed in Scotland, this kind of marine generator can make the best use of Scotland's natural resources and help combat the threat of global warming in the future."

"Scotland has the potential to generate a quarter of Europe's marine energy and kick-starting the sector is vital if we are to create a significant industry based in Scotland and meet our long-term renewables targets," said Deputy First Minister Nicol Stephen, speaking at the launch of the project in Leith.