Wave power company Pelamis has made its remaining staff redundant after no final offers were made for the business.
Highlands and Islands Enterprise has been selected as the preferred bidder to take over the company’s assets.
Administrators were called in last month after Pelamis failed to secure enough funding to develop its technology.
Blair Nimmo, joint administrator and head of restructuring at KPMG in Scotland, said: “Following the sales process, I am pleased to confirm that Highland and Islands Enterprise has been appointed preferred bidder in relation to acquiring the assets of Pelamis Wave Power Limited.
“Over the coming days we will be working to finalise the sale and are hopeful that the transaction can be concluded in the near future.
“Unfortunately, as no going concern solution has been found, the remaining staff will shortly be made redundant.
“We are working with government agencies to ensure employees obtain as much assistance as possible.”
The business had employed more than 50 staff in the design, manufacture and operation of wave energy converters.
There had been 16 staff members left at the company.
The Scottish government said it was establishing a public innovation company, Wave Energy Scotland, and pledged to offer job opportunities for some of its staff.
The Highlands and Island Enterprise will now be responsible for setting up the new body and delivering on its remit.
A Scottish government spokeswoman said: “We are very pleased that Wave Energy Scotland has been named by KPMG as the preferred bidder for some of the assets of Pelamis Wave Power.
“It was always our aim to retain the intellectual property from device development in Scotland for future benefit.
“The HIE team delivering Wave Energy Scotland is now engaging with KPMG to complete the purchase.”
“Scotland is determined to remain at the forefront of wave power innovation.
“We are delighted that these valuable intellectual assets will remain in Scotland and form the foundation of Wave Energy Scotland’s programme.”
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