A pioneering tidal energy company set up by a Pembrokeshire marine engineer is due to go into full production within a year.

Tidal Energy Limited (TEL), set up by Richard Ayre, uses DeltaStream technology, taking the concept of wind turbine and ship propeller systems deep beneath the ocean.

And with the move to full production in summer 2009, Pembrokeshire is in line for a boost of 100 jobs.

Each DeltaStream generator features three turbines which sit on the seabed on a triangular frame and can produce enough electricity to supply 1,000 homes.

When deployed commercially, they will be situated across the seabed to generate vast amounts of green electricity.

Mr Ayre said: "The DeltaStream technology started out as solution to a problem. While working on information buoys in St Brides Bay I noticed that there was a huge amount of energy being produced by the tides that was completely untapped.

"Trawlers were damaging the flora and fauna in the Marine Nature Reserve and DeltaStream seemed the perfect solution to making the most of the unused energy and a way to direct trawlers away from the most sensitive areas".

Initial testing was carried out in the Milford Haven Waterway with funding from Pembrokeshire National Park. The technology was progressed by Cardiff University which contributed to the design of the system's fluid dynamics and further refinement of the turbine's blade design is currently being carried out by Cranfield University.

Following comprehensive underwater trials in Pembrokeshire of the early prototype, TEL plans to begin manufacturing its device this year, with a view to full-scale installation in summer 2009.

Chris Williams, project director at TEL, said: "Manufacturing and assembly of DeltaStream will generate up to 100 sustainable jobs for a region and we are hoping to establish the company with its roots in Pembrokeshire, where there is a plentiful supply of suitable skills and resources".

Welsh renewable energy company Eco2 Ltd is the main shareholder and commercial driver behind TEL. It is spearheading a £6 million fundraising exercise, providing £1 million itself. It has already invested £150,000, which has been matched by the Carbon Connections Development Fund.

The British Wind Energy Association estimates that marine power could provide between 10 and 20% of the UK's electricity needs.