E.ON has announced that it has made a final investment decision on the 385 MW Arkona offshore wind farm in the Baltic Sea.

The German energy company will partner with Statoil for the €1.2 billion project, with each firm owning a 50 per cent stake.

The decision to move forward with Arkona will make E.ON the first company to operate wind farms in both the German North Sea and the Baltic Sea. The company is currently transforming its business, having recently spun off its conventional thermal power generation unit and refocused on renewable energy, grids and services.

"E.ON stands at the beginning of a far-reaching transformation. Some 15 years ago E.ON underwent a metamorphosis, changing from a conglomerate into a pure-play energy company," CEO Johannes Teyssen said recently. "Now we’re sharpening our business profile even more. Our objective is to make E.ON into a leading company of the distributed, renewable, and digital energy world."

The Arkona offshore wind farm will be located 35 km northeast of Rügen Island. It will consist of sixty 6 MW Siemens turbines mounted on monopile foundations installed in sea depths of 23-37 m.

E.On will be responsible for building and operating the wind farm. "This project offers ideal conditions for further reducing the costs of offshore wind and will be a big step toward realizing our goal of making renewables truly competitive," E.ON Climate & Renewables CEO Michael Lewis said.

The wind farm is expected to be fully operational in 2019.