US-based Lockheed Martin and Atlantis Resources have started work on design optimisation of the 1.5MW AR1500 tidal turbine.
The AR1500 turbine will have active rotor pitch and full nacelle yaw rotation, Lockheed Martin said.
AR1500 has been designed to facilitate operation in a highly energetic tidal location.
It will initially support the MeyGen project in Scotland's Pentland Firth and be deployed in Canada's Bay of Fundy.
Once completed, the MeyGen project is estimated to deliver up to 398MW of electricity, which is sufficient to power 200,000 homes.
Lockheed Martin director of ocean energy Tim Fuhr said that the company's technology, development and expertise in ocean systems and global system integration skills will enable the AR1500 to use powerful tides to generate safe, clean renewable energy for homes and businesses around the world.
Atlantis Resources chief executive Tim Cornelius said, "Our AR1500 development program with Lockheed Martin will ultimately deliver the rapidly growing tidal energy industry the most advanced, robust and powerful tidal turbine system available on the market."
Tidal turbines are similar to the technology used in wind power.
Lockheed Martin and Atlantis have entered into an exclusive teaming partnership in 2013 for developing technology, components and projects in the tidal power sector globally.
Image: The AR1000 turbine nacelle, being prepared for transit to the deployment location at the European Marine Energy Centre in Scotland. Photo: courtesy of Atlantis Resources Ltd.