The investment, part of the European Regional Development Fund, will help Minesto in establishing a UK headquarters in North Wales and support commissioning of the first commercial Deep Green project.
The company’s Deep Green systems look like underwater kites that generate energy from low-velocity tidal and ocean currents.
Minesto will deploy the plant’s first 500kW system as part of an array that will increase to 10MW of capacity by 2019.
The entire development will generate enough energy for about 8,000 homes. Wales has 1,200km of coastline with low-velocity tidal currents, enough to supply around 5% of the UK’s total electricity demand.
Wales First Minister Carwyn Jones said: "We have extensive raw wave and tidal energy resources along our shorelines, and this is an excellent example of commercial solutions being developed in Wales to help drive our potential to be a world-leader in the marine energy market.
"This investment will not only help create greener and more efficient sources of energy, but will also create jobs and vital opportunities for growth in North Wales."
Minesto CEO Anders Jansson said: "We have been working closely with the Welsh Government over the course of the last year to ensure that this investment will enable Minesto to move into commercialisation, as well as to establish marine energy as a viable industry in North Wales and the UK."
