A company in the Shetlands has been awarded a green energy contract.

The agreement will see Shetland Composites manufacture blades for a number of tidal turbines.

The six-month contract has been made possible by Nova Innovation, who is developing five 100kW tidal turbines, known as the Shetland Tidal Array.

The turbines will sit more than 100ft below the waves and will be developed in two phases. The first three devices will be commissioned by the end of 2015, it is understood.

The device itself has a rotating turbine which is spun by the power of the tide; this then drives a generator that produces electricity, which is then transmitted to the shore via a subsea cable.

The Highlands and Islands Enterprise (HIE) awarded Shetland Composites £69,774 towards the extension of its workshop in Lerwick, while Scottish Enterprise and the Renewable Energy Investment Fund (REIF) are supporting Nova Innovation with £1.9m of grant and loan funding for the tidal array project.

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Simon Forrest, Managing Director of Nova Innovation, said: "We are delighted to award our blades manufacturing contract to Shetland Composites. It represents a significant milestone for the world's first Tidal Array and builds on years of expert co-operation between our two companies.

"It owes its success to both Scottish Enterprise and Highlands and Islands Enterprise's strategy to deliver an integrated marine energy supply chain here in Scotland."

Fred Gibson, Shetland Composites, added: "This is a big step for the company. Up until now most of our work in the marine renewable sector has been in the development of prototype devices. Now finally these projects are scaling up and becoming commercial viable.

"The funding from Highlands and Islands Enterprise has been hugely important in helping the company realise its expansion plans. The extension will increase capacity which means we can take on more work and recruit two additional employees."

Deputy First Minister John Swinney commented: "This contract from Edinburgh-based Nova Innovation is great news for Shetland Composites and the local economy.

"The Scottish Government and its agencies will do everything we can to ensure Scotland benefits from the significant economic opportunities the renewables industry presents.

"The seas around Scotland have the potential to provide us with a sustainable, renewable energy source. We will do all we can to help companies such as Nova innovation to access these resources."

(JP/CD)