The Hornsea-1 farm will be capable of powering over one million UK homes with a capacity of 1.2 gigawatts and is expected to be fully operational in 2020.
The project has the potential to create around 2,000 jobs during its construction, with up to 300 additional jobs supported throughout its 20-25 year operational phase.
A new Siemens turbine-blade factory in Hull, due to be built by the end of this year, will support the project, boosting a UK wide supply chain.
British Energy Secretary Amber Rudd commented: “Thanks to Government support, the UK is the world leader in offshore wind energy and this success story is going from strength to strength.
“Dong Energy’s investment shows that we are open for business and is a vote of confidence in the UK and in our plan to tackle the legacy of under-investment and build an energy infrastructure fit for the 21st century.”
Hornsea-1 will span an area of more than 400 square kilometres and will use 7 megawatt (MW) wind turbines, with each one 190 metres tall.
Siemens has been named preferred supplier for the 7 MW wind turbines and the new Siemens turbine production facilities in Hull will support the project. A £25 million contract has also been awarded to UK infrastructure company Balfour Beatty for the construction of the onshore substation.
Dong Energy also has the project rights to Hornsea-2 and Hornsea-3, which have the potential of 3 GW of offshore wind power capacity in total.
Brent Cheshire, DONG Energy UK Chairman, said: “Hornsea Project-1 is a world-leading infrastructure project being built right here in the UK. It is ground-breaking and innovative, powering more homes than any offshore wind farm currently in operation.
“We are making a major financial investment to construct this giant wind farm and this underlines our commitment to the UK market. Hornsea-1 will support the supply chain and help create local jobs. To have the world’s biggest ever offshore wind farm located off the Yorkshire coast is hugely significant, and highlights the vital role offshore wind will play in the UK’s need for new low-carbon energy.”