Mr Russell, denied suggestions from former deputy First Minister Nicol Stephen that a "secret loan" was made.

BBC: Public Audit Committee

It came as Deputy First Minister Nicol Stephen said more Scots companies should be branching into the sector.

BBC: NEWS | UK | Scotland | Edinburgh and East | Renewable energy fund announced

Scottish Liberal Democrat leader Nicol Stephen said that there was no way his party would support a referendum on independence.

BBC: NEWS | UK | Scotland | SNP begins coalition discussions

Mr McConnell was joined by Enterprise Minister Nicol Stephen and Communities Minister Malcolm Chisholm at the launch of the plan in Greenock.

BBC: NEWS | UK | Scotland | Makeover for deprived urban areas

Transport Minister Nicol Stephen said on Thursday that the Scottish Executive believed it was in the public interest to proceed with the project.

BBC: NEWS | UK | Scotland | M74 protesters vow to fight link

"We can't forget that it was Nicol Stephen who allowed Portugal to take the wave power initiative in the first place, " he said.

BBC: NEWS | UK | Scotland | Positive waves over power project

Nicol Stephen, the Liberal Democrat MSP for Aberdeen South, told the justice secretary, if he closed the Aberdeen laboratory it would create a "criminals' charter".

BBC: Forensic services debate

Liberal Democrat Nicol Stephen said the Public Audit Committee was "one of the major success stories of devolution" and had uncovered some very bad mistakes.

BBC: Public Audit Committee debate

Then came the most outspoken attack on the development, when the then Scottish Liberal Democrat leader Nicol Stephen said the Scottish Government's involvement with the plans "smelled of sleaze".

BBC: Saga of Tycoon's golfing vision