The project, located 8km off the UK coast in Liverpool Bay, will feature 32 MHI Vestas V164-8MW wind turbines and is anticipated to be commissioned in 2017.
The extension facility will be located next to the existing 90MW Burbo Bank wind farm, which is situated on the Burbo Flats in Liverpool.
The extension covers 40km² area and will sit to the west of the operational facility in Liverpool Bay, about 7km north of the North Wirral coast.
Dong Energy executive vice president Samuel Leupold said: "I am very pleased that with this final investment decision we can now begin the construction of Burbo Bank Extension which will supply green power to approximately 180,000 UK households.
"The construction and operation of this wind farm will support green growth and employment in the UK.
"The decision to construct Burbo Bank Extension using an 8MW wind turbine is another significant step towards reducing cost of electricity on future projects."
The Burbo Bank Extension is the first of three projects for which Dong Energy secured final investment decision enabling contracts from the UK government in April 2014.
Image: The extension facility will be located next to the existing 90MW Burbo Bank wind farm, which is situated on the Burbo Flats in Liverpool. Photo: Courtesy of DONG Energy A/S.
