German major E.On has announced that it is to construct a large offshore wind farm in Danish waters after winning the concession for the project for the second time.

The Rödsand II wind farm will be located south of the Island of Lolland and with a capacity of 2000 MW will be capable of supplying about two per cent of Denmark’s power demand. E.On says it will invest around EUR400 million in the project, which will be developed by E.On Climate and Renewables.

E.On and its partner Dong originally won the tender to develop Rödsand II two years ago but pulled out of the project in December 2007, citing unfavourable financial conditions caused by the increasing capital costs of several plant items. The Danish Energy Board started a new tendering process in February 2008 and E.On was once again successful.

E.On says that with a revised and robust economic case, it is now able to proceed with the project.

“The development of renewables is essential for climate protection and important part of our growth strategy,” said E.On CEO Wulf H. Bernotat. “By 2010 we want to invest about EUR6 billion in this sector alone, more than any other European company.

“Following the acquisition of the wind energy companies Airtricity in the US and E2 Renovables Ibéricas in Spain last year, E.On is already the seventh largest wind power company worldwide. With the Rödsand offshore project we are reinforcing our global position and expanding our experience and expertise in the field of offshore wind power.”

Much of the preparation work for the project has been completed and start-up of the first turbines is scheduled for 2010. The proximity of the project location makes Rödsand a good location for building offshore capacity.