Renewable energy company Iberdrola Renovables SA (IBR.MC) and Spanish research company Tecnalia plan to invest EUR4.5 million in the development of wave energy, Iberdrola Renovables said in a release Friday.
The two companies plan to build a wave energy project, dubbed Oceantec, that is slated to be tested at sea off the coast of the Basque Country region in northern Spain in 2009.
Iberdrola Renovables will do the investment via its newly setup venture capital fund Iberdrola Perseo. The fund aims at supporting renewable energy projects with a high technology value, Iberdrola Renovables said.
The company is already developing marine energy projects off Spain and off the Orkney Islands in Scotland.
Iberdrola Renovables is a unit of Spanish power utility Iberdrola SA (IBE.MC), and is the world's biggest wind-power generator.