The £4 million contract will see the first Oyster 2 wave power device manufactured over the next 6 months at BiFab’s manufacturing plant at Methil, Scotland.

Installation of the wave energy device will then begin at the European Marine Energy Centre (EMEC) near Stromness in Orkney in summer 2011.

The project is also being supported through grant funding awarded by Scottish Enterprise and the Carbon Trust Marine Renewables Proving Fund.

Martin McAdam, CEO of Aquamarine Power says: “Strong support from both Scottish and UK governments has enabled our company to leverage significant private sector investment, and this is resulting in major manufacturing contracts in Scotland and across the UK.”

Only last week, Aquamarine announced £11m of inward investment from ABB and existing shareholders including Scottish and Southern Energy (SSE).

Aquamarine Power’s Oyster 2 wave demonstration project will consist of three flaps, each measuring 26 m. Although it is only 50% wider it will deliver 250% more power than the original Oyster 1 which was deployed at EMEC last summer.

The three wave energy devices will be linked to a single onshore 2.4 MW hydro-electric power station. The new devices incorporate a number of design improvements, which means they will produce more energy, be simpler to install and easier to maintain, Aquamarine says.