Ecosse Subsea Systems and Robert Gordon University (RGU) have been awarded a £5,000 grant to study a new wave-power technology.
The grant, received through the Scottish Funding Council, will be used to study the new wave device, which is claimed to produce 2-5MW of power.
This is said to be enough to power an entire town.
Current wave-power technology mainly produces only a few kilowatts and devices suffer due to their inability to withstand inclement weather.
Mike Wilson, managing director of Ecosse Subsea Systems, said: 'This technology is not only totally renewable but will be robust enough to handle harsh environments. The generated power will be exported for onshore use where the energy will be fed into the national grid.'
Dr Alan Owen, chartered energy engineer at the Centre for Research in Energy and the Environment at RGU, added: 'When Wilson approached us two years ago with the wave-power technology idea we were keen to get involved. This initiative represents cutting-edge technology that could be in use in the next two years.'
RGU has already started work on the project, which incorporates wave-tank testing. Once the final results are compiled, Ecosse Subsea Systems will handle the construction and installation of the actual device.