The US Energy Department is providing nearly $16 million (£10.3m) to capture energy from waves, tides and currents in the country.
A total of eight projects will share $13.5 million (£8.7m) from the fund to build durable, efficient wave and tidal devices that can reduce overall costs and maximise the amount of energy captured.
Another $2.4 million (£1.55m) will be shared between nine projects, which will gather and analyse environmental data as well as potential development areas.
Latest assessments by the Energy Department found up to 1,400 terawatt hours of energy could potentially be generated from wave and tidal every year – with one terawatt hour of electricity enough to power around 85,000 homes.
David Danielson, Assistant Secretary for energy efficiency and renewable energy said: “Wave and tidal energy represent a large, untapped resource for the United States and responsible development of this clean, renewable energy source is an important part of our all-of-the-above energy strategy.”
Last month a UK University won a £250,000 grant for research into reducing the costs of wave energy generators.