The European's Commission's research and innovation programme Horizon 2020 has granted €17million in funding for the Clean Energy From Ocean Waves (CEFOW).
The five-year project is to research and develop the use of the Penguin wave energy converter, which was developed by the Finnish company Wello, in electricity grid conditions.
The multi-device test project will be carried out at Wave Hub in Cornwall.
Heli Antila, chief technology officer, at Fortum, which is coordinating the research project, said: "Wave power may play an important role in the future as an emissions-free energy producton form, and that is why Fortum is partcipating in the research and development efforts.
"By this project we are expecting to increase our capabilities and skills in the field of wave power.
In the project, the Finnish wave power technology is being developed and operated in collaboration with British and Swedish experts.
The EU has granted €17million of the project's total budget of €24.5million.
In addition to Fortum, the joint project consists of Well, Mojo Maritime, Wave Hub limited, Green Marine, Uppsala University, Plymouth University an University of Exeter.