Marine Current Turbines proposal, to build a tidal farm in Kyle Rhea, Scotland through EU funding, has been approved by the UK Department of Energy and Climate Change (DECC).
The proposal will be sent to the the European Investment Bank, which will perform due diligence on the application for nine months.
The proposed 8MW tidal farm will feature four turbines and will be built by 2014, subject to public consultation, planning consent and financing.
The £40m ($65.43m) facility can generate electricity for up to 8,000 homes.
The facility is expected to receive funds under the EU’s NER scheme, which is a fund worth around EUR4.5bn ($6.48bn).