When operational, the new wind farm will have a capacity of up to 1.2 gigawatts which will make the world’s largest offshore wind farm, producing enough clean green electricity to power over 1 million UK homes.
The contract will sustain around 100 jobs.
Ian Donnelly, Managing Director of Babcock's energy and marine business said:"Babcock is delighted to be working with DONG Energy on the construction of the world's first offshore reactive compensation station at our facilities in Rosyth, Fife.
"As well as generating clean, green energy for well over one million UK homes, Hornsea Project One is also providing a real boost to the UK supply chain. This contract with Babcock is another example of this."
Duncan Clark, Programme Director for Hornsea Project One at DONG Energy,added:"DONG Energy is absolutely committed to investing in the UK and we are delighted to be working with Babcock on this world first structure which will play an important part of the world's largest offshore wind farm.”
Cllr Lesley Laird, Fife Council’s depute leader and executive spokesperson for economy and planning, said: “This announcement is great news for Babcock, one of our largest employers, and for local people across Fife.
“This latest development is significant for the UK’s renewables sector, and reinforces Fife’s position on the world stage for renewables.”
The Hornsea Project One is expected to be operational in 2020.