The DTI's Marine Renewables Deployment Fund has announced plans to provide a grant of £4.5 million for the South West Regional Development Agency's (SWRDA) Wave Hub project.

If the green light is eventually given, more than £20 million will be injected into developing the infrastructure to harness the power of the seas. The hub will act as a giant extension cable linking a number of innovative wave energy devices to the national grid.

Minister for Energy Malcolm Wicks said:

"The project still has to get through a robust consent process before getting into the water, and to finalise the device developers who will connect to it. But if successful, it will be a shining example of UK innovation that could provide 3% of Cornwall's electricity needs. That is up 20 MW of renewable and secure emission free energy powering 7,500 homes."

If the final scheme wins approval, it is expected to be in operation by 2008. A final decision on the project is expected by the end of the year.