Energy company E.ON is to pull out of a marine energy research project in Orkney, the BBC has said.
The firm had been working alongside Edinburgh-based Pelamis Wave Energy to test a wave energy converter at the European Marine Energy Centre (EMEC).
It is thought delays regarding the development of wave energy technology was behind E.ON's decision to step away from the scheme.
In response, Pelamis Wave Power said the latest development would not affect its plans to start generating electricity on a commercial scale. It will continue to work with Scottish Power Renewables on the development of its P2 wave energy device at the EMEC in Orkney.
Speaking to BBC Scotland, a spokeswoman for E.ON said the company still believed marine energy could provide commercial opportunities in the future.
She said: "Delays in wave technology progress and a focus in E.ON on other more mature renewable technologies have been part of the decision to reduce our level of effort in the marine area.
"Having successfully built up a leading position in the marine energy area, we will continue to monitor technologies and work towards being prepared when marine energy is more mature and we are in the right position to move forward."
(JP/CD)
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