German-based company Energie Baden-Württemberg (EnBW) has signed a contract with Spanish company Iberdrola to provide services for construction of the €1.4bn Wikinger offshore wind farm in the Baltic Sea in Germany.

The deal is valid for two years and helps in the coordination of shipping traffic, environmental betterment, and health and safety at the construction site off the island of Ruegen.

EnBW generation and operation business head of technology Nikolaus Elze said: "The conclusion of this contract represents a new example of cooperation in the offshore wind industry that will benefit both companies.

"Iberdrola can draw on the expertise of a proven team and benefit from the comprehensive experience acquired by EnBW during construction of the first two offshore wind farms off the German Baltic coast.

"The conclusion of this contract represents a new example of cooperation in the offshore wind industry that will benefit both companies."

"For the EnBW team it’s a great opportunnity to gain additional expertise over the next two years, working on a project that involves different technical components and suppliers."

With the first foundation piles scheduled to be deployed in March 2015, the project will use 70 wind turbines.

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It is the same time when the cable installation will also begin.

The total output from the wind farm will be 350MW.

Iberdrola Germany country manager Jürgen Blume said: "As the installation of Wikinger project draws nearer, this contract will ensure that the best practices in terms of quality control, health and safety and respect for the environment are implemented throughout the entire construction phase while securing completion and grid connection by 2017.

"In March, the first foundation piles will be rammed into the seabed and preparations for the cable installation will commence. This agreement showcases the strong partnership between offshore wind developers in the Baltic Sea."

The Wikinger offshore project is the third wind farm project of EnBW after the construction of its offshore wind farms Baltic 1 and 2.

The new wind farm, after being fully operational, will produce electricity same as the consumption of more than 350,000 families in Germany.

It will additionally prevent the emission of approximately 600,000t of CO2 every year.