A renewable energy project off the coast of Shetland has been given the go-ahead.

The tidal turbine is to be created after First Minister Alex Salmond announced a fabrication contract between Scottish firms Steel Engineering and Nova Innovation.

It will be connected to the grid and provide electricity to the North Yell community in Shetland to power a local ice plant and industrial estate.

Leith-based Nova Innovation are fabricating material for the turbines in Steel Engineering's newly expanded Renfrew facility.

First Minister Alex Salmond said: "Scotland is leading the way in the development of marine renewables, and today's announcement that the world's first community-owned turbine is to be manufactured and deployed on these shores is a truly fantastic endorsement of our burgeoning renewables sector."

Peter Breslin, managing director of Steel Engineering, added: "We are delighted to win this ground-breaking renewable contract and look forward to a long-term working partnership with Nova. This contract will help to put Steel Engineering on the map as a major renewable manufacturer and will also help to safeguard and create Scottish jobs at our facility in Renfrew."

The Nova-30 (30kW) tidal turbine will be deployed underwater in the Bluemull Sound between the islands of Yell and Unst. It will be owned by the North Yell community, which received a grant of £150,000 from the Scottish Government to help its development.

Simon Forrest, director of Nova Innovation, said: "Nova Innovation is delighted to announce this important milestone which will help accelerate the growth of our business and significantly advance marine energy in Scotland."