The agreement will enable Eco2 Ltd and its subsidiary Tidal Energy Limited to start to take early steps to develop their tidal project including the preparation of applications for the necessary marine consents.
If Tidal Energy Limited is able to secure the necessary agreements the company should then be granted a full lease that would enable them to construct and operate the tidal energy scheme.
Speaking about the announcement by The Crown Estate, the Environment Minister said:
"The Welsh Government is strongly committed to unlocking the energy in our seas. We have significant expertise across government, industry and academia and we are bringing that expertise together to focus on the delivery of marine energy.
"The energetic waters off Wales are ideally suited to the current stage of technology development and will play a vital role in the growth of the industry.
"We believe that Wales has the potential to be a world-leader in the marine energy market as a significant generator and, just as importantly, as an exporter of marine energy knowledge, technologies and services.
"This signal from the Crown Estate is a positive next step in helping us to realise this ambition. Not only is it great news for Tidal Energy Ltd, it is also great news for marine energy in Wales and for the wider Welsh economy. ”
Martin Murphy, Managing Director of Tidal Energy said:
“We are delighted to have secured this Agreement for Lease off St David’s Head. It is an important step as, together with our existing project in nearby Ramsey Sound, we look to able to demonstrate the real prospects for marine renewable energy in Wales.”