PLANS for a new £6.6 million research and innovation campus in Orkney are set to go ahead after the two organisations behind it came to an agreement on funding for the project.

Highlands and Islands Enterprise (HIE) and Orkney Islands Council (OIC) yesterday announced they had entered a partnership deal to fund the 3.75-acre campus in Stromness.

Orkney Research and Innovation Campus will support the growth of existing activity and the expansion of companies in Orkney’s world-leading marine renewables, energy and low-carbon sectors. Also, it is hoped it will attract more research activities to Orkney from both the commercial and academic worlds.

HIE’s board has approved funding of up to £5.15m for the project, which includes £1.48m of European Regional Development Fund (ERDF) cash that it administers.

OIC will provide £1.5m and will also transfer ownership of the Old Academy and the former Stromness Primary School to the partnership. The adjoining buildings will be refurbished, updated and extended to create the new campus.

The project aims to attract academic institutions and businesses that have an interest in carrying out a wide range of research projects in an island setting. This could include research linked to Orkney’s energy resources, transport needs, culture and economy.

Economy Secretary Keith Brown said: “I’m pleased to support this investment to support existing and new SMEs based in the Islands.

“We made clear in both our Economic Strategy and Programme for Government the importance of investing in rural areas. I’m sure that this investment will increase the competitiveness of Orkney in the marine renewables sector, encourage business diversification, growth, inward investment and foster international partnerships.

“The overall economic climate has changed as a result of the EU referendum, which is why we are determined to pursue every avenue to secure Scotland’s continued place in Europe and the stability, jobs and investments such as this.”

The Old Academy already houses the European Marine Energy Centre, Heriot-Watt University’s International Centre for Island Technology, environmental consultants Aquatera and a number of other businesses.

“They are supportive of our joint venture with HIE and will benefit greatly by having their existing facilities upgraded,” said Councillor James Stockan, chairman of the council’s development and infrastructure committee.

“By adding in the former primary school, and modernising both buildings, our aim is to create a 21st-century centre of excellence in a stunning setting, overlooking the harbour in Stromness.

“We are in discussion with a number of organisations who are actively considering making use of the facilities at the new campus. We are confident that this project will lead to new jobs and activity in Stromness, which will greatly benefit the town and Orkney as a whole.”

Graeme Harrison, HIE’s area manager in Orkney, added: “This is a huge investment in Orkney’s future business and academic infrastructure, the impacts of which will be felt across Orkney.

“It will support the growth of existing businesses and the creation of new enterprises. Crucially, it will provide more opportunities to attract and retain young people looking to live, work and study in the islands.

“We are delighted to offer support and look forward to a long-term partnership with Orkney Islands Council in bringing this important development to fruition.”

The project’s next stage will be a planning application and, if that proves successful, it is intended that work on the creation of the campus will begin before the end of the year.