Media reports in Scotland suggest that a firm heavily involved in local renewable energy projects is on the brink of liquidation.

Camcal is based on the western island of Lewis, and played a key part in the manufacturing process for a major new tidal energy system being trialed in Portugal at present.

The Scotsman newspaper reports that a delay in new orders mean the company has been forced to approach the regional authorities and Scottish Executive in the hope that it can stay afloat. The crisis talks began on July 12 but are ongoing.

The Scotsman quotes the former UK energy minister Brian Wilson as saying that the plight of the company is a worrying sign of the fragility of the whole UK renewables sector, with much of the talk surrounding green energy not reinforced by commercial contracts to see projects delivered.