Scotland is to offer one of the largest scientific prizes in the world in an effort to stimulate ground breaking research into renewable technology.

The announcement in the Budget of the £10m Horizon Prize is modelled on the X Prize Foundation in the US which developed its $10m prizes in areas such as commercial space exploration, genome breakthroughs and non-petrol cars.

With the Horizon Prize to be worth double the X-series, the Scottish Government hopes to attract international entries and stimulate a breakthrough in harnessing energy from the waters around the country.

Energy Minister Jim Mather said: "The Scottish Government will award one of the biggest international innovation prizes in history. The Saltire Prize will be an annual prize fund of £2m, with a £10m Horizon Prize attracting the cream of the world's scientists to make Scotland a leading centre for renewable energy.

"The potential for Scotland to increase sustainable economic growth while bringing major advances in clean energy are massive. Scotland can challenge scientists and businesses around the world to bring the vast potential of clean, green, alternative energy online years sooner than might otherwise happen.

"This will be the largest renewable energy innovation prize in the world. "

The Saltire was originally intended to be worth £5m but with no guarantee of it being awarded every year. It will now become a £2m award granted every year, with £10m being set aside in the future to reward a tangible breakthrough, targeted at aspects of marine renewables.

One key aspect of this technology is to design equipment that can survive the hostile and corrosive environment, while another possible area for the prize could be a breakthrough in storing the energy generated.

The combined outlay on the two prizes will be £16m over three years, instead of the £15m which would have been earmarked for the Saltire Prize alone.