Wave Hub, the world's first large-scale wave farm off the coast of north Cornwall, will create 1,000 jobs and £330m in the regional economy over 25 years.

This is the conclusion of a new independent economic impact assessment commissioned by the South West RDA.

Located about 10 miles (16km) out to sea off Hayle, Wave Hub - which will collect energy from wave turbines - should be able to generate electricity for around 7,500 homes, directly saving 300,000 tonnes of carbon dioxide over 25 years.

This would support South West England's target for generating 15 per cent of the region's power from renewable sources by 2010.

The government granted planning approval for the ambitious £28m project at the end of last year.

Maria McCaffery, BWEA: "Wave Hub will be a crucial part of the learning curve for everyone with an interest in wave energy development around the world and will underpin the growing confidence in these exciting technologies."

Wave Hub will be connected to the National Grid by a 15.5 mile (25 km) cable linked to a new electricity substation at Hayle.

Companies developing wave energy technology will be able to plug into Wave Hub to test their wave energy devices. Four companies have already been chosen to use the scheme.

According to the South West RDA, "Wave Hub will put the region and the UK at the forefront of emerging wave energy technology by providing a leased and consented area of sea for the pre-commercial testing of wave energy devices".

Maria McCaffery, chief executive of the BWEA, the trade and professional body for the UK wind and marine renewables industries, said: "Wave Hub will be a crucial part of the learning curve for everyone with an interest in wave energy development around the world and will underpin the growing confidence in these exciting technologies.

"It's this kind of progress that makes the UK the global hotspot for the expansion of carbon free energy from the sea and we must ensure it remains so."

Tim German, director of the Cornwall Sustainable Energy Partnership, added: "Wave Hub will be a key feature of the industrial revolution of the 21st century, playing an important role in Cornwall's economic and low carbon future."

The Wave Hub project will cover an area of sea measuring 4km by 2km and each wave device developer will be granted a lease of between five and 10 years in an area of approximately 2 sq km.

The water at the deployment site is approximately 50 metres deep.

Up to 30 wave energy devices are expected to be deployed at Wave Hub and will float on the surface of the sea.

Wave Hub is expected to be operational in 2009.