The deal by Dong Energy will see Babcock provide the station for the Hornsea Project One offshore wind farm, on the east coast of England.

Hornsea Project One, when operational, will have a capacity of up to 1.2 gigawatts which will make it the world’s largest offshore wind farm. It will produce enough clean green electricity to power well over 1 million UK homes.

The reactive compensation station is a vital part of transmitting to shore the clean electricity produced by the offshore wind farm, enabling the high voltage AC system to work with cable lengths longer than those previously used for offshore wind. The reactive compensation station will be located between the offshore wind farm and shore.

Duncan Clark, programme director for Hornsea Project One at Dong Energy, said: “Dong Energy is absolutely committed to investing in the UK and we are delighted to be working with Babcock on this world first structure which will play an important part of the world’s largest offshore wind farm.

“As well as generating clean, green energy for well over one million UK homes, Hornsea Project One is also providing a real boost to the UK supply chain. This contract with Babcock is another example of this.”

Ian Donnelly, managing director of Babcock’s energy and marine business, said: “Babcock is delighted to be working with Dong Energy on the construction of the world’s first offshore reactive compensation station at our facilities in Rosyth, Fife. This contract will sustain around 100 jobs within our operation here.

“Our team’s commitment to engineering excellence and focus on safe and effective delivery for our customers makes Babcock the ideal partner for major projects such as Hornsea Project One.

“This is a significant development for the UK’s renewables sector and Babcock is delighted to be playing its part in it.”

Fife Council said the announcement “reinforces Fife’s position on the world stage for renewable”.

Cllr Lesley Laird, Fife Council’s depute leader and executive spokesperson for economy and planning, said: “Babcock’s achievements show that Fife has a first class engineering skills-base, world leading facilities at Rosyth and that investing in the region can reap real business benefits. Its success story sends a strong message to other national and international companies that Fife has a lot to offer.

“I am delighted that Babcock Modern Apprentices will also be involved in the project. Fife Council is committed to developing our local young workforce, and we continue to work with Babcock on a range of initiatives involving apprentices and schools.

“Fife Council continues to work with Babcock and other landowners in showcasing the world leading facilities, capabilities and companies on the Rosyth Waterfront.”

The announcement follows Babcock’s announcement at the end of 2015 that it is set to develop a new multi- million pound state-of-the-art engineering centre at its Rosyth facilities, as part of an ongoing programme of investment on the Fife site.

Hornsea Project One is located 120 kilometres off the Yorkshire coast – further than the distance from Leeds to Liverpool. It will span a huge area of approximately 407 square kilometres, which is over five times the size of the city of Hull. It is expected to be operational in 2020.

Work to construct the reactive compensation station will start this summer and is set to be complete in 2018.