StatoilHydro and power utility Statkraft have partnered for a 10 billion kroner ($1.49 billion) UK offshore wind farm project.

Sheringham Shoal, between 17 km and 23 km off the coast of the town of Sheringham in northern Norfolk, will cover an area of 35 square kilometres.

Statkraft will acquire 50 percent of the shares to become an equal partner in the project, which was previously 100 percent owned by StatoilHydro.

The 315-MW Sheringham Shoal offshore wind farm off the cost of Norfolk in eastern England is expected to start production in 2011.

The wind farm will consist of 88 turbines. When fully operational, its annual electricity production is expected to be around 1.1TWh, enough energy to power around 220,000 UK homes. Construction at Sheringham Shoal is due to begin in early summer. Sheringham Shoal is ready for construction and will be developed according to schedule, with StatoilHydro as the operator during the construction phase.

Moreover, the two companies have also tied up to bid for rights to develop offshore wind farms under the U.K.’s third licencing round. StatoilHydro and Statkraft are also collaborating with SSE/Airtricity and RWE/Npower on the joint venture Forewind, bidding for the third licensing round in the UK.

Bård Mikkelsen, chief executive of Statkraft, said Europe is facing massive growth in renewable capacity by 2020, and 50 percent of the growth is expected to come in wind power. The company is looking on building upon its experience of working on onshore wind power.

“The partnership with StatoilHydro will take us into the offshore wind industry as well – which is in line with our core growth strategy and within the investment plans already communicated to the market,” said Mikkelsen.