Ørsted said the new wind farm would make “a significant contribution” to the Government’s ambition to have 50 gigawatts of offshore wind in operation by 2030.

The project will support up to 5,000 jobs during its construction phase, with up to a further 1,200 permanent jobs both directly and in the supply chain in the long operational phase.

Ørsted chief executive Mads Nipper said: “Offshore wind is an extremely competitive global market, so we also welcome the attractive policy regime in the UK which has helped secure this investment.

“We look forward to constructing this landmark project, which will deliver massive amounts of green energy to UK households and businesses and will be a significant addition to the world’s largest offshore wind cluster.”

The pricing deal for Hornsea 3 runs for up to 15 years starting after commissioning of the wind farm, which is expected around the end of 2027

After it ends, Hornsea 3 will receive the market price for electricity or enter new power purchase agreements, Ørsted said.