The Australian Government has announced funding of almost $10 million for two pilot wave energy projects.

BioPower Systems will receive $5.6 million to install a 250 kilowatt full-scale pilot of its bioWAVE technology off the southern coast of Victoria 4 kilometres from Port Fairy.

The bioWave plant is mounted on the sea floor. An array of buoyant floats sways back-and-forth in tune with the waves and the energy contained in this motion is converted to electricity and is delivered to the grid through a cable.

The Australian Government grant, together with a $5 million grant from the Victorian Government, means that the pilot bioWave project is fully funded.

The Australian Government is also providing just under $4 million to Oceanlinx to install a 1 megawatt demonstration of its Greenwave technology.

Oceanlinx' 2,000 tonne concrete structure will sit on the ocean floor in around 10 metres of water. The 20 by 20 metre structure will feature an oscillating water column, with the turbine and other moving parts above the waterline. It is expected to be world's first wave energy device to be rated at 1 megawatt.

The demonstration device will be installed around 4 kilometres off the South Australian coast near Mount Gambier.

Oceanlinx is also developing a deep water device to be made of steel and anchored to the seabed.