Around 90 jobs are expected to be created with the development of a renewables innovation centre at Methil Docks business park, it has been revealed.
The project has received a massive boost with the award of almost £900,000 of European funding.
This will help with construction costs and to develop a support package of business services and commercial premises to young businesses starting out in the renewable energy sector.
The award of £875,337 from the European Regional Development Fund (ERDF) follows a successful submission from Fife Council development services.
The 1400 square metre building will be carbon neutral and will be able to support up to 100 businesses.
Also gaining an ERDF award is Support For Enterprise, a business support service to encourage self-employment as a way out of unemployment.
The £196,423 funding will allow the programme to continue to offer support services such as advice on the benefits of self-employment and support to help overcome any barriers to starting or growing a business, and small start-up grants of up to £1000.
News of the awards comes hot on the heels of the announcement that a Fife Council-led bid for an East of Scotland Investment Fund grant had received £2m of European cash.
This will enable small- to medium-sized businesses in the east of Scotland to access loans of up to £50,000.
Angus, City of Edinburgh, Dundee, Falkirk, Midlothian, Moray, Perth and Kinross, and West Lothian councils are partners with Fife Council in this initiative.