DONG Energy, E.ON and Masdar will invest DKK 16.4 billion (about $US3 billion) in building the first 630MW phase of the London Array offshore wind farm in the Thames Estuary. Once complete, the scheme will be the world’s largest, and the first 1GW, offshore wind farm.

The project will supply enough power for around 750,000 homes—or a quarter of Greater London homes—and displace the emission of 1.9m tonnes of CO 2 every year.

The decision to proceed came after the UK Government’s recent proposal to increase its support for offshore wind power, according to the partners, who are now satisfied that the project is now financially viable.

Onshore work is now due to start in the summer, with offshore work due to start in early 2011.

The scheme will be built around 12 miles off the coasts of Kent and Essex. The wind farm will be installed on a 90 square mile site and will be built in two phases. The consortium hopes the first phase of 630MW will be completed and generating in 2012. The first phase will consist of 175 turbines. The second phase will add enough capacity to bring the total to 1,000MW.

The project consortium partners have the following shareholdings: DONG Energy owns 50%, E.ON has 30% and Masdar has a 20% stake.