The stage has been set for the world's first community-owned tidal turbine to be made and deployed in Scotland.

A fabrication contract was announced yesterday between Steel Engineering and Nova Innovation, for a 30kW Nova-30 tidal turbine, to be deployed between the islands of Yell and Unst, Shetland.

During a visit that formed part of the Scottish Government's Summer Cabinet programme in Renfrew, First Minister Alex Salmond confirmed that the two companies had reached agreement to manufacture a tidal turbine that will be connected to the grid and provide electricity to people in one of the most remote parts of Scotland.

The government has already supported the North Yell community to develop this turbine project, by granting it £150,000.

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The device, which will power a local ice plant and industrial estate, will be fabricated for Leith-based Nova Innovation Ltd in Steel Engineering's newly expanded Renfrew facility. The new premises will help the firm meet its ambition to create 120 new jobs.

Mr Salmond said: "The turbine being developed by Nova Innovation - based in Leith - and manufactured by Steel Engineering - based in Renfrew - will be used to power businesses in a Shetland community, showing the very tangible benefits that marine renewable power can bring to Scotland's businesses and people in the years to come.

Peter Breslin, managing director of Steel Engineering, said: "We are delighted to win this ground-breaking renewable contract and look forward to a long-term working partnership with Nova. This contract will help to put Steel Engineering on the map as a major renewable manufacturer and will also help to safeguard and create Scottish jobs at our facility in Renfrew."

Simon Forrest, Director of Nova Innovation, said: "We see significant potential for tidal arrays for other communities across Scotland and look forward to working with Steel Engineering on this and future marine renewable projects."

Nova-30 employs a horizontal axis, three-bladed rotor to extract reliable and predictable energy from the tides. It will help regenerate the fragile economy of North Yell - one of Europe's most remote communities, providing valuable income and supporting local jobs.

(NE)