The European Investment Bank (EIB) has agreed to provide €500m in loan to Germany-based EnBW Erneuerbare Energien to develop the 288MW Baltic 2 offshore wind farm.
The farm in the German Baltic Sea is proposed to be constructed 32km north of the island of Rügen and will employ a total of 80 turbines.
The EnBW Baltic 2 project is expected to generate 1.2 billion KWh of electricity per annum, that is sufficient to power 340,000 average German households.
European Investment Bank vice president Wilhelm Molterer remarked that projects of this magnitude were imperative to help Germany meet its ambitious energy goals.
"With the financing that has now been agreed, it will be possible to implement the extensive project quickly and make a decisive contribution to the success of the energy transition," said Molterer.
EnBW Energie Baden-Württemberg AG financial chairman Thomas Kusterer noted, "The commitment of EIB to a project like EnBW Baltic 2 makes a very essential contribution towards the energy transition."
The farm is expected to be operational in 2014 and will help displace 900,000 tons of carbon dioxide per annum.