The 398MW tidal array development, dubbed the MeyGen project, will be built in the Pentland Firth, Scotland.
Atlantis has raised over £51m in funding from the UK Department of Energy and Climate Change, Scottish Enterprise, Highlands and Islands Enterprise and the Crown Estate.
Phase one of the project will see the installation of four 1.5MW turbines over the next two years, which will increase to 61 turbines by 2020.
The first phase, which will have 86MW of capacity, will involve the construction of onshore infrastructure, including a substation, a grid connection and the installation of power export cables.
Construction on phase one is expected to start later in 2014 and the first power is expected to be delivered to the grid by 2016.
The first phase of the project is expected to provide enough electricity for 42,000 homes in Scotland.
ABB, Andritz Hydro Hammerfest, Global Energy Group and James Fisher will serve as supply chain partners for the project, which will provide electricity for 175,000 homes.
Atlantis CEO and MeyGen director Tim Cornelius said: "Today, we are witnessing the transformation of a sector.
"MeyGen is one of the most exciting and innovative renewable energy developments in the world, marking the long-awaited arrival of tidal stream generation as a serious, large-scale player in global energy markets."
The UK owns 50% of Europe’s wave and tidal energy resource, which is expected to provide 20% of the country’s electricity demand.
The Meygen project is part of the the UK Government’s £100bn drive of private sector investment in sustainable energy by 2020.
Image: The first phase of the MeyGen project is expected to provide enough electricity for 42,000 homes in Scotland. Photo: Courtesy of Rawich/FreeDigitalPhotos.net.
