Vattenfall plans to build a 92.4MW combined wind farm and technology deployment centre off the Scottish coast with an investment of more than SEK3bn ($348.3m).

The Aberdeen Offshore wind farm, also known as the European Offshore Wind Deployment Centre (EOWDC), is said to be Scotland’s largest of its kind.

Scheduled to be completed in 2018, the EOWDC will also test and demonstrate new offshore wind technology.

The investment decision leads to an agreement for Swedish utility to acquire 25% stake in the project from Aberdeen Renewable Energy Group (AREG).

Following the stake acquisition, Vattenfall will gain the full ownership of the project.

Vattenfall Business Area Wind senior vice-president and head Gunnar Groebler said: “Vattenfall, AREG, The Crown Estate, the Scottish Government and many others have been working since consent in 2013 to deliver the project and support the increasing competitiveness of the offshore wind sector.

“Now the Vattenfall team and our contractors will focus on building the project safely and help establish the north east of Scotland as an international centre for offshore wind innovation.”

The project is also expected to contribute to Vattenfall’s plan to increase its installed wind power capacity from 2GW to 4GW by 2020 while focusing on reducing and streamlining offshore wind power costs.

AREG chair and Aberdeen City councilor Jean Morrison said: “The EOWDC is an important element in the strategy to diversify our energy industry, access new international markets, reduce the cost of offshore wind and create and safeguard jobs.”

Onshore construction of the project is planned to commence later this year and is due to complete late next year. The 11-turbine wind farm will have 20 years of operational life.

Scotland Business, Innovation and Energy Minister Paul Wheelhouse said: “This project will keep our nation at the forefront of innovation by allowing energy companies to identify new ways to reduce operating costs.”

MHI Vestas will supply the 11 beefed-up 8.4MW versions of its V164 turbines while Boskalis will be turnkey offshore contractor, reported ReNews.