Wick Harbour has been given up to £450,000 to help redevelop the port for the renewable energy industry.
Local and national politicians have hailed the cash as a huge boost for the port as it chases lucrative offshore renewables contracts.
The Nuclear Decommissioning Authority (NDA), which is responsible for the Dounreay nuclear site clean-up, will contribute £250,000 and Highlands and Islands Enterprise (HIE) has offered up to £200,000, which will be added to private funding.
If plans for the Moray and Beatrice offshore windfarms are approved, more than 600 turbines would be erected in the sea off Caithness.
The grants will finance the initial parts of the phased port development – installing heavy lift facilities at the commercial quay and dredging the entry channel. Wick Harbour Authority chairman Willie Watt said: “Since 2005, the board at Wick Harbour has consistently worked towards achieving commercial sustainability for the harbour in the long term.
“The support and confidence that HIE and NDA have shown is testament to the long-term vision we have planned.”
He added that the board looked forward to developing the harbour “in response to the potential that will come from the two major offshore wind projects just off our shores”, potentially bringing more than 300 jobs.
Caithness councillor Alex MacLeod said: “This is extremely exciting news for Wick Harbour and for the wider Caithness economy.
“This funding is a great show of confidence in our county. With major developments set to take off in the North Sea, Wick is perfectly placed to support the new renewables revolution.”
Local SNP MSP Rob Gibson said: “This is a great boost for the Wick area and is recognition of the vital and positive role that the harbour can play in supporting the offshore renewables industry.”
Highlands and islands Labour MSP Rhoda Grant MSP said: “This investment is exactly what Wick and the far north needs inorder to meet the demands of the growing energy industry.
“This considerable investment in Wick Harbour will mean that the port could serve as a base for the construction of the offshore windfarms which are proposed off the coast of Moray and Caithness.”