Scottish company Texo Group has been awarded a “multi-million pound” contract by Orbital Marine Power to manufacture to latter’s 2MW O2 tidal stream turbine.Fabrication due to wrap up next year ahead of installation at EMEC off Scotland.

The unit, a successor to the 2MW SR2000 machine, will be made at Texo’s quayside facilities in Dundee.

Fabrication is expected to wrap up next year in time for installation at the European Marine Energy Centrey in Orkney, Scotland.

Texo Group managing director Robert Dalziel said: “We are proud and privileged to be awarded this prestigious contract. The O2 is a pioneering project that will transform the future of tidal energy on a global scale and will be a showcase for the very best in Scottish engineering.”

“Our team has a wealth of experience in marine engineering with particular expertise in offshore oil and gas – this project enables us to showcase our vast capabilities for the offshore renewables sector.”

Orbital chief executive Andrew Scott added: “This is a flagship engineering project for the emerging tidal sector and we are delighted to be working with TEXO Group to showcase the very capable supply chain we are fortunate to have around us in Scotland and the wider UK.”

The O2 project has been financed in a number of ways including EU Horizon 2020 funding and a £7m crowdfunding bond, which Orbital successfully raised at the start of the year. The project also benefits from previously offered market support for the sector via the Renewable Obligation, said Orbital.