Wave power is seen as a way to tackle climate change

The Department of Trade and Industry has given details of its �50m investment in wave and tidal power north of the border.

The move follows a report which found that marine energy could generate 10% of Scotland's electricity by 2020.

A consultation exercise is also set to look at plans to pump carbon dioxide gas under the bed of the North Sea.

The money will go towards a Marine Renewables Deployment Fund to develop energy supplies such as wave and tidal power to help tackle climate change.

The north east of Scotland is seen as particularly well-placed to take commercial advantage of the developments.

This is excellent news and a significant boost to the UK marine sector Tom Delay Carbon Trust

Ministers are committed to 10% of electricity being generated from renewable sources by 2010 with that figure doubling to 20% 10 years later.

But the news will also be tempered by a separate announcement, expected soon, that will look at controversial proposals to bury millions of tonnes of carbon dioxide emissions in cavities under the North Sea.

The Department of Trade is about to begin a consultation exercise on the plans and the results should be known by the end of the year.

'Significant boost'

Trade and Industry Secretary Patricia Hewitt said: "Renewable energy, through wind, wave and other sources, plays a vital part in our fight against climate change and we are committed to further developing renewable energy to play an increasing role in the UK's energy mix.

"This announcement reflects that vision and puts us firmly on the path to becoming the world leader in renewable energy."

Welcoming the announcement, Deputy Enterprise Minister Lewis Macdonald said: "I am delighted that the DTI has responded so positively to the need to support our emerging marine energy sector and we look forward to continuing to work with them to develop this support mechanism."

Marine test centre

Tom Delay, chief executive of the Carbon Trust, added: "This is excellent news and a significant boost to the UK marine sector.

"The Carbon Trust is already working with the leading wave and tidal stream companies through our Marine Energy Challenge to accelerate the development of these technologies.

"With the DTI and the Scottish Executive, we are supporting the world's first marine test centre in Orkney.