E.ON and Statoil will invest more than 1.2 billion euros ($1.35 billion) to develop the Baltic Sea Arkona wind farm off the coast of Germany, the two companies said on Monday.
The firms will each own 50 percent in the 385 megawatt project, which is expected to be fully operational in 2019.
“The Arkona wind farm will provide renewable energy for up to 400,000 households in Germany, making it one of the largest ongoing offshore wind developments in Europe,” Statoil said in a statement.
The project will use 60 six-megawatt turbines from German manufacturer Siemens, E.ON said separately.
“This project offers ideal conditions for further reducing the costs of offshore wind and will be a big step toward realizing our goal of making renewables truly competitive,” it added.
Oil major Statoil last year set up a New Energy Solutions unit to expand outside its traditional base of oil and gas.
“This investment is in line with our strategy to gradually complement our oil and gas portfolio with profitable renewable energy and other low-carbon solutions,” Statoil Chief Executive Eldar Saetre said.