Contracts totalling almost EUR2 billion have been agreed with seven European suppliers, which will be responsible for providing the components and expertise needed to construct the first 630MW phase of the project. Offshore work is scheduled to start early in 2011, with phase one construction to be finished by the end of 2012.

Sited in the Thames Estuary, the project is expected to supply enough power for approximately 750,000 homes – or a quarter of Greater London homes – and displace emission of 1.9m tonnes of CO2 every year.

Anders Eldrup, CEO of Dong Energy, said: “We look forward to working together with this experienced team of partners. Together we will achieve the goal of constructing the world’s largest offshore wind farm.”

Frank Mastiaux, chief executive of E.ON Climate & Renewables, said: “Signing these contracts is a significant milestone for the London Array project, which will be a vital scheme as we look to take renewables from being a niche power player to being a significant, vital part of the UK’s energy landscape.”

London Array will be built around 20km off the coasts of Kent and Essex. The wind farm will be installed on a 245sqkm site and will be built in two phases.

In May, Dong Energy, E.ON and Masdar revealed that they would be investing EUR2.2 billion in the first phase of London Array. This will cover 100sqkm and include 175 turbines with a combined capacity of 630MW.

The consortium plans to complete the first phase in 2012. If approved, the second phase is expected to add enough capacity to bring the total to 1,000MW. Dong Energy owns 50%, E.ON has 30%, and Masdar has a 20% stake in the project.