The extension is part of a project to create a Marine Energy Service base in Kirkwall and will see the county's largest deep-water pier extended northwards by 160m at a total cost of £8m.
A total of £3.4m funding towards the capital cost of the project was awarded from the ERDF programme and the beginning of the year.
The development includes a newly formed quay, workspace and lay-down area which will support marine energy traffic and associated industrial activities.
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Typical daily activities at the base will include the arrival, assembly, storage and deployment of devices as well as the unloading of vessels involved in survey, operation and maintenance work.
Chairman of the Council's Transport and Infrastructure Committee, Councillor Jim Foubister, said: "The awarding of the contract for this latest £8m project is the second phase of the council’s ambition to develop a three port strategy to support the marine renewable industry in Orkney.
"With the £3m Phase 1 development at Lyness now complete and already in use, we are now awaiting a decision on an application for ERDF funding to develop a new pier at Coplands Dock in Stromness.
"The Council has also purchased an additional 20 acres of land at Hatston for use as a support base and to complement HIE's £3m development of industrial units currently being built."
(JG/BMcC)
