MeyGen Ltd., a joint venture tidal- energy developer part-owned by Morgan Stanley (MS), has joined three finalists in entering Scotland’s 10 million-pound ($16 million) Saltire Prize that seeks to spur innovation in marine energy.

The company’s tidal energy project off the north coast of Scotland will compete against projects by Aquamarine Power Ltd., Pelamis Wave Power Ltd. and ScottishPower Renewables (UK) Ltd., the Scottish government said today in an e-mailed statement.

Morgan Stanley and International Power Plc each own 45 percent of MeyGen and Atlantis Resources Corp. the rest.

The prize is awarded for commercially viable wave or tidal- energy technology in Scottish waters with a minimum electrical output of 100 gigawatt-hours over two years. Wave and tidal- stream energy has the potential to produce about 20 percent of the U.K.’s current electricity demand, the government says.

To contact the reporter on this story: Tom Metcalf in London at tmetcalf7@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net