Statoil and E.ON are investing €1.2 billion (£0.9bn) in a wind project in the German waters.
Located 35 kilometres northeast of Rugen Island, the 385MW Arkona wind farm will consist of 60 turbines.
The project is expected to provide green energy for up to 400,000 households and create up to 400 jobs during the two-year construction phase.
E.ON will be in charge of building and operating the wind farm.
Michael Lewis, E.ON Climate & Renewables CEO said: “This project offers ideal conditions for further reducing the costs of offshore wind and will be a big step toward realising our goal of making renewables truly competitive.”
First electricity production is expected in 2019.