Finance Secretary John Swinney announced that the Scottish Government will contribute £2.2 million to help complete a funding package of around £20 million for the project.
The work will include upgrading facilities at the port for existing users, including the fisheries and freight industries, and exploiting the potential from the emerging marine energy sector in the Pentland Firth and Orkney Waters.
Mr Swinney said: "This project is pivotal to Scrabster Harbour's development, its future role at the forefront of Scotland's marine renewables industry and the future economic prosperity of Caithness and North Sutherland.
"The redevelopment will result in improved facilities for existing fisheries and freight users and meet anticipated increased demand from oil and gas supply vessels. It will also enable the harbour trust to take advantage of the emerging marine energy sector and large-scale projects in the Pentland Firth.
"Given the importance of marine renewables to developing Scotland's low carbon economy and our growth strategy, and the undoubted employment benefits, the Scottish Government has decided to provide additional resources to help turn this project into reality."
Alex Paterson, Chief Executive of Highlands and Islands Enterprise, commented: "This announcement demonstrates what can be achieved when the private and public sector work together. There is ever growing international recognition of the opportunities in marine renewables for the Pentland Firth and Orkney Waters. It is critical that we put the right infrastructure in place to meet the needs of businesses who can deliver on this potential."
The financial assistance from the Scottish Government will add to the other funding for the project sourced from across the public sector, including Highlands and Islands Enterprise, the Nuclear Decommissioning Authority, the European Regional Development Fund, European Fisheries Fund, and also from the Scrabster Harbour Trust.
This key infrastructure project will support the diversification of the Caithness and North Sutherland economy from its nuclear dependence, as Dounreay is decommissioned. The additional financial assistance will be funded from within planned budgets.
Funding For Scrabster Harbour
SCOTLAND, UK - The redevelopment of Scrabster Harbour has received a funding injection.