Energy Security Minister Graham Stuart described the business, which will create a Pumped Thermal Energy Storage system, as "pioneering".
"I'm delighted that Scotland's PTES Demonstrator project is receiving government backing to make it a reality - there is a lot of talent in our UK industries and it's great to see them playing a role in the nation's energy security." In November East Lothian-based company Sunamp received £9.25m to help trial its advanced thermal storage system in 100 UK homes.
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