The project is estimated to cost $250m and is expected to be one of the first offshore projects in the country.

Deepwater will employ five Siemens 6MW turbines to generate electricity that will be sold to a UK power company National Grid.

According to Deepwater Wind CEO William Moore the company is hopeful of gaining insight into the workings and development of an offshore wind farm and on completion of the Block Island project is expected to develop a chain of wind farms off the US East Coast with an estimated capacity of 1000MW, costing about $4bn.

"With Block Island we are gaining real-time information on what it will cost to build the bigger project.

"That is a huge competitive advantage as we look to transition to the 1,000-MW (Deepwater Wind Energy Center) we are hoping to build in federal waters," Moore added.