A £35 million fund to support production of new offshore wind technology in Scotland has been announced by First Minister Alex Salmond.

The announcement was made at the opening of the second Scottish Low Carbon Investment Conference in Edinburgh.

It was also announced that 'Oyster' wave energy developer Aquamarine Power has secured £7 million of new funding and a commitment of further investment from existing shareholders over the next two years to help take the company to commercialisation in 2014.

The Minister welcomed the publication by Scottish Enterprise of a new Offshore Wind guide - which emerged following last year's inaugural SLCI conference - indicating that Scotland's oil & gas sector can help reduce offshore wind costs by at least 20 per cent.

He said: "Last year's conference gave a clear focus on what was needed to provide optimum investment conditions for low carbon energy - from ensuring we brought offshore oil & gas expertise together with the renewables industry, to providing the right support to bring research and development to Scotland. We listened, we acted and in 12 months we have achieved much. But there is more to do. The last year has demonstrated the appetite of the Scottish Government and private sector to work together to invest in this exciting new industry.

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Scottish Enterprise chief executive Lena Wilson commented: "Offshore wind is a rapidly expanding, long term, global market, with significant low carbon economic growth opportunities for Scotland. We have a real opportunity to capture a share of the critical turbine manufacturing market and this fund underlines our commitment to developing our business environment to ensure Scotland is at the forefront of a globally competitive offshore wind sector and helps achieve Scotland's low carbon economic growth ambitions."

Highlands & Islands Enterprise chief executive Alex Paterson added: "We welcome the announcement of the POWERS development fund as an additional support which will help us move forward and build on the many assets we already possess across the Highlands and Islands. Scotland is a great place for all types of renewable energy, with an established and growing supply chain, good infrastructure bases and an abundance of natural resources. The POWERS fund is a further indicator of Scotland's determination to be a global player in the growing offshore wind market."

Aquamarine Power CEO Martin McAdam also commented: "This new investment and further financial commitment from our existing shareholders is another tremendous vote of confidence in Aquamarine Power's Oyster technology, our team, and the global market potential of nearshore wave energy. We are still seeking new shareholders who can bring additional finance and technical expertise to our business by investing alongside our existing shareholders in future rounds."

(JG/BMcC)