Germany's largest power producer, RWE AG, has announced it is to construct 1.6 gigawatts of offshore wind capacity in the North Sea. It took the decision despite persistent supply-chain challenges.
While demand for renewable energy is surging, soaring costs have halted some offshore wind projects in both the UK and the US.
Building on the first project will start in 2025 and finish in 2026, the company said. It will start building the second wind farm in 2027, with operations beginning in 2029.
Combined, the projects, known as the Nordseecluster, will consist of 104 wind turbines that produce 6.5 terawatt hours of green electricity a year, RWE said.
The wind farms, which will be about 50 kilometres north of the island of Juist, will give the company eight wind farms off the German coast.
RWE chief executive Sven Utermoehlen quoted by Dow Jones newswires said: "This will contribute in particular to the decarbonisation of industry in our home market."
RWE, which plans to spend €55 billion on green technologies by 2030, made two-thirds of its first-quarter investments in offshore wind. The utility aims to triple its offshore wind capacity to 10 gigawatts by the end of the decade.
The new German wind farms will mainly supply industrial customers, including data centre operators.
