Atlantis has announced it has secured funding for the next stage of its tidal energy project.

The second phase of the MeyGen scheme is called “Project Stroma” and aims to demonstrate progress to a lower cost of energy for tidal stream.

Stroma Tidal Power Limited (STPL), the subsidiary behind the next phase of the development at the MeyGen site, has confirmed the investment decision to proceed with the project.

Construction is expected to start in 2017.

It will include larger diameter rotors to capture more energy from the tidal flow as well as optimised turbine power ratings.

MeyGen is expected to have a capacity of 400MW and generate enough electricity to power 175,000 homes.

Tim Cornelius, CEO of Atlantis said: “The lessons we have learned from Phase 1A and the confidence it has given to both us and our supply chain allow us to deliver significant improvements and refinements in this next phase. We believe these improvements will yield more electricity for each pound of investment and represent a material step down our cost reduction curve.

“STPL has been working towards this investment decision in line with the specified programme for the NER300 fund, which has awarded €16.8 million (£13.9m) of grant support to Project Stroma.”