The Oceanlinx system uses the rise and fall of waves to power turbines

Australia-based Oceanlinx will use its energy converter which it claims can produce enough power for 1,500 homes.

The project aims to create the world's first large scale wave energy farm by constructing a wave hub, or "socket", on the seabed.

It is hoped that the entire scheme when operational could generate electricity for 7,500 homes.

Oceanlinx joins three other companies - Ocean Power Technologies Limited, Fred Olsen Limited and WestWave - each of which will be granted a lease of a sea area of 2 sq km.

Last month the South West Regional Development Agency announced that it had approved �21.5m of funding to construct Wave Hub, subject to UK Government and EU approval.

The Department of Trade and Industry has also committed �4.5m to the project.

Some surfers are worried the wave devices could take energy from the waves and reduce wave heights by up to 10%, putting the surfing industry in Cornwall at risk.

But the environmental campaign group, Surfers Against Sewage, said it supported the project.