A ground breaking project at Scalloway's NAFC Marine Centre and Newcastle University will research how waste from the aquaculture industry can be turned into renewable energy.
Shetland Islands Council will tomorrow (Thursday) decide whether to give almost £55,000 towards the project, while an application for £61,000 of European LEADER funding will be decided upon later in May.
The project, if it gets the green light, will investigate how at least 2,000 tonnes of material, made up of dead farmed salmon and organic mussel farming waste, could be diverted from landfill.
The EnWRAP project (Energy from Waste - Realising Aquaculture's Potential) will use standard "off the shelf" biogas equipment, widely used to break down farm slurry, in a laboratory prototype using aquaculture waste.
NAFC business development officer Alan Bourhill said the project could open up huge future opportunities.
"There is enough material going to landfill to make this a viable opportunity to look at. The future potential for this sort of technology is huge as there is also domestic and agriculture waste that could link in to a combined facility producing biogas," he said Tuesday.
Mr Bourhill added: "Another aspect of this project, which is fairly unique, is that it is doing all the groundwork that would enable future private or public funds to produce a commercial facility.
"It will look at all planning aspects and consent agreements, and will put a value at the marine industry waste in terms of energy production.
"This is a project for Shetland. The end result will be potentially a business case with the scientific back up to say how many thousands of potential materials could go to such a facility to give us 'x' amount of litres of biogas," he said.
In a report before the council's development committee on Thursday, its author Jon Dunn said the research project promises significant benefits for the isles.
"This report concerns a tried and tested renewable technology that once optimised to deal with marine waste products offers considerable potential for Shetland to utilise such waste to generate renewable energy; improve the operational and economic efficiency of marine based businesses; and further enhance Shetland's reputation as a sustainable and environmentally conscious community," he said.
Mr Bourhill added that all the Scottish isles were allowed to landfill untreated fish waste, a practise that is prohibited on the mainland
He said it was vital for the local marine industry to find an alternative use for its waste while the dispensation was still in place.