First Minister Alex Salmond has welcomed the announcement of a joint-venture by Pelamis Wave Power, the Edinburgh technology developer, and Vattenfall, one of the largest utilities in Europe.

The First Minister addressed key business, third sector and trade union representatives at the fourth meeting of the National Economic Forum in Edinburgh.

The forum will focus on productivity and renewable energy as well as looking towards Scotland's economic recovery in 2010.

The new Vattenfall-Pelamis venture, called Aegir, which aims to develop the first wave power project off the Shetland Islands, was announced as the First Minister prepared to open Vattenfall's first office in Scotland.

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Mr Salmond said: "I'm delighted that Vattenfall have decided to open a new base in Edinburgh. It is clear that Scotland is now seen as the natural home for those who wish to develop and succeed in the marine renewable sector.

"The Scottish government is committed to developing a world-class wave and tidal energy sector and to maintain our position as a global leader in the development and deployment of these technologies - that's why we have launched the Saltire Prize, which is capturing the imagination of green energy developers around the globe.

"Vattenfall's announcement today of a joint-venture with Pelamis Wave Power, the Edinburgh technology developer, is a significant vote of confidence in Scotland's huge marine energy potential."

(GK/KMcA)