Danish company Dong Energy will develop a new offshore windfarm with a total export capacity of 450MW.
Known as Borkum Riffgrund II, the new project will deploy the largest turbines ever used in German waters, featuring 56 MHI Vestas' 8MW turbines equipped with rotor spans of 164m.
Dong Energy's windpower executive vice-president and head Samuel Leupold said: "Offshore wind makes a significant contribution to the German energy transition, and Borkum Riffgrund II confirms Dong Energy's position as one of the major investors in the renewable energy infrastructure in Germany.
"The 8MW turbine takes offshore wind-efficiency a further step forward. Its size is yet another indication of market maturity. We'll continue our relentless efforts to drive down the cost of electricity from offshore wind."
Upon completion, the project will be able to supply emissions-free power sufficient to meet electricity demands of nearly 460,000 homes every year.
Dong Energy's windpower country manager Trine Borum Bojsen said: "With Borkum Riffgrund II, we'll start the construction of our fourth offshore windfarm in Germany.
"After its completion, Dong Energy will have installed approximately 1.35GW of offshore wind in German waters and will supply power to 1.4 million households."
Expected to be fully commissioned in the first half of 2019, the farm will take the total installed capacity of Dong Energy to 6.7GW, which already exceeds the company's target to achieve installed capacity of 6.5GW by 2020.
Borkum Riffgrund II will be built 54km off the coast of Lower Saxony in northwestern Germany, next to the Borkum Riffgrund I.