DONG Energy, E.ON and Masdar today announced they will invest €2.2 billion to build the first 630-megawatt phase of the London Array offshore wind farm in the Thames Estuary.

Once complete, the scheme will be the the world’s largest — and the first 1-gigawatt — offshore wind farm. The project will supply enough power for around 750,000 homes, about a quarter of Greater London homes, and displace the emission of 1.9 million tonnes of carbon dioxide every year.

The London Array is expected to begin producing energy in 2012.

Today’s announcement comes after the UK Government’s recent proposal to increase its support for offshore wind power, a move that E.ON, DONG Energy and Masdar now make the London Array project financially viable.

“The decision to build the London Array offshore wind farm is a very significant cornerstone in DONG Energy’s strategy to increase the proportion of electricity generated from renewable energy sources,” said Anders Eldrup, CEO of DONG Energy. “DONG Energy has built approximately half of all offshore wind farms in operation in the world today. Entering into the world’s largest offshore wind farm project further strengthens DONG Energy’s leading position in this field.”

“Today’s announcement is proof that, if all interested parties work together, renewable power can be taken to its next level and so make a real difference to the fight against climate change,” added Wulf Bernotat, CEO of E.ON.

“The leadership of Abu Dhabi recognizes the importance of global collaboration and engagement to deploy renewable energy on a large scale,” added Sultan Al Jaber, CEO of Masdar. “The London Array represents Masdar’s strategic approach to renewable energy, whereby real partnerships are formed between government and the private sector.”

Prime Minister Gordon Brown and Energy and Climate Change Secretary Ed Miliband both also welcomed today’s announcement.

“The London Array is a flagship project in our drive to cut emissions by 80 per cent by 2050 and meet future energy needs,” Brown said. “The UK is a world leader in offshore wind farms, creating jobs and prosperity for the economy. That’s why we have increased our support for this technology as we move towards a low carbon future.”

“This is another green light for green energy,” Miliband added. “It’s a vote of confidence in the support the Government has put into backing renewable energy. The UK is already the world’s leading offshore wind power and this multi-billion pound project will help keep us there, cut our carbon emissions and contribute to secure energy supplies.”

Onshore work on the London Array is due to start this summer, with offshore work set to begin in early 2011. The project, to be built about 12 miles off the coasts of Kent and Essex, will be installed in two phases.

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