A wave technology company has secured funding worth £10.3 million from the EU for a demonstration project.
Finance Secretary Mark Drakeford said the grant will support the design and testing of a 1.5MW fully-submerged wave energy converter capable of generating large amounts of electricity.
Developers Bombora Wave Power Europe will develop and commercialise the technology from its Pembrokeshire base.
The £15 million project is expected to create up to 20 skilled jobs in South West Wales.
Mr Drakeford said: “We want Wales to be at the forefront of research and innovation in the marine energy field and I am delighted to announce more than £10 million of EU funding to help develop technology that creates large amounts of renewable electricity.
“Developers from across the globe are showing an active interest in developing projects in Welsh waters, recognising Wales has one of the best marine energy resources and support structures to be found anywhere.”
The project will support the government’s aim of reducing emissions by at least 80% by 2050.