The Scottish National Investment Bank (SNIB) has backed an offshore wind farm, a move that "sends a strong signal to the market", according to Deputy First Minister Kate Forbes.
The £50 million investment in the Pentland Floating Offshore Wind Farm was announced on Wednesday, with SNIB joining forces with GB Energy and the National Wealth Fund.
Highland Wind Limited, majority owned by Danish-based Copenhagen Infrastructure Partners, is developing the project off Caithness.
At full capacity, the project is expected to power up to 70,000 homes and create 1,000 jobs during the construction phase.
Ahead of the announcement, Ms Forbes said: "This is the Bank's first direct investment in an offshore wind farm, sending a strong signal to the market that floating wind is of critical importance for Scotland's energy transition, our supply chain and our economy.
"This means the Bank can work closely with the developer to support the Scottish supply chain, enhance innovation, boost local job opportunities and receive financial returns.
"The Scottish Government is doing everything within its power to realise the once-in-a-generation opportunity presented by offshore wind in terms of jobs, innovation, skills and a just transition to net zero.
"This is why we are investing up to £500 million over five years to create a highly productive, competitive offshore wind economy."