Aquamarine Power has selected Burntisland Fabrications (BiFab) to build its next-generation Oyster wave energy device in Scotland.
Oyster 2, will be fabricated by BiFab over six months at its manufacturing plant in Methil, Scotland.
Aquamarine Power's Oyster 2 demonstration project will consist of three flaps, each measuring 26m in width.
Despite being 50% wider, it will deliver 250% more power than its predecessor, Oyster, deployed at EMEC last year.
The three devices will be linked to a single onshore 2.4MW hydroelectric power station and a small farm of 20 Oyster devices would provide energy for over 12,000 homes.
Following the fabrication, the installation of the device will begin at the European Marine Energy Centre (EMEC) near Stromness in Orkney in summer 2011.
The £4m ($6.4m) project is also receiving support from grant funding awarded by Scottish Enterprise and the Carbon Trust Marine Renewables Proving Fund.