Masdar joins E.ON, DONG for world's largest wind farm

Denmark’s DONG Energy, Germany-based E.ON (OTC: EONGY) and the United Arab Emirates-based Masdar aren’t just building an offshore wind farm. They’re hoping to make it the world’s largest.

The consortium announced plans today to invest €2.2 billion ($3 billion) to build the first 630 megawatt-phase of the London Array offshore wind farm in the Thames Estuary.

The project is eventually expected to have 1 gigawatt of energy generation capacity, enough to supply power for around 750,000 homes—or a quarter of Greater London homes. It could also displace the emission of 1.9 million metric tons (2 million U.S. tons) of CO₂ every year.

The wind farm is to be built 12 miles off the coast of Kent and Essex, installed on a 90-square-mile site being built in two phases. The onshore work is expected to start this summer, with offshore work planned to begin in early 2011.

The consortium expects the first phase of 175 turbines, generating 630 MW, to be completed and generating power by 2012. The second phase aims to add enough capacity to bring the total to 1,000 MW.

The announcement comes on the heels of the UK government planning to increase financial support for offshore wind power and provide £10 million ($15.24 million) in funding to develop offshore wind technology.

In April, the UK’s Carbon Trust announced a £20 million ($30.48 million) prize to encourage engineers worldwide to help commercialize sturdier, cheaper foundations for offshore wind farms (see Carbon Trust in £20M hunt for offshore turbine foundations).

Last year, DONG Energy and E.ON first announced their plans to buy Royal Dutch Shell’s (NYSE: RDS.A) stake in the London Array offshore wind farm, becoming 50-50 partners in the project (see E.ON, Dong buy Shell's stake in London Array). Masdar's involvement was announced today.

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