"This investment underlines our commitment to supplying British Gas customers with an increasing proportion of renewable electricity in the years ahead," said Sam Laidlaw, chief executive of Centrica.
The site is about three miles off the coast and the onshore work is under way to connect the power generation cable in Lincolnshire. The project, which is expected to supply clean electricity to around 130,000 homes, is scheduled for completion by the end of 2008.
Centrica also announced it will become a 50 percent partner in the onshore Braes of Doune wind farm located in central Scotland. That farm recently began generation, bringing the United Kingdom's total installed wind capacity above 2000 megawatts. Braes of Doune is in its commissioning phase, with completion expected during spring 2007.