Norwegian company Statkraft has agreed to buy a 50% stake in a wind project off the coast of England.
It will jointly develop the 900MW Triton Knoll offshore wind farm with RWE Innogy, with construction expected to start in 2017.
Once built, it is expected to generate enough electricity to meet the needs of up to 800,000 households every year.
While the financial details of the agreement were not disclosed, the companies said the project could bring up to £4 billion of investment and nearly 2,000 jobs in the UK.
More than £20 million has already been invested during the development process, according to RWE Innogy.
Energy Secretary Ed Davey welcomed the news as “another vote of confidence in the world’s number one offshore wind market”.
He added: “We have created the right conditions in the UK for the offshore wind industry to flourish and have attracted around £7 billion worth of offshore wind investment since 2010.”