Fluor Corporation (NYSE: FLR) announced today that it signed a contract with Scottish and Southern Energy (SSE) to design and construct the 500 megawatt (MW) Greater Gabbard Offshore Wind Farm. The venture is the world's largest offshore wind farm project to move into the construction phase and will be built approximately 25 kilometers off the Suffolk coast of the United Kingdom (UK). The new award will be booked in the company’s second quarter of 2008 and is worth approximately $1.8 billion (£900 million).

It will be the first UK offshore wind farm to be built outside territorial waters and will provide carbon neutral, renewable electricity for more than 415,000 homes, equivalent to the approximate domestic demand of Suffolk.

The Greater Gabbard Offshore Wind Farm Project has been developed by a 50:50 joint venture between Fluor International Limited and Airtricity (acquired by SSE in February 2008). Having successfully completed the development phase and signed the construction contract, Fluor has sold its 50 percent stake in Greater Gabbard Offshore Winds Ltd to SSE for approximately $80 million (£40 million).

Prior to receiving the engineering, procurement and construction (EPC) contract, Fluor’s development responsibilities included the management of environmental studies, site surveys and engineering that culminated in the submission of an Environmental Impact Statement. Fluor also leveraged its supply chain knowledge and experience to support the joint venture in securing the project’s connection to the UK’s National Grid, the supply of offshore wind turbines, heavy steel structures and other critical supply chain elements required for timely construction.

Fluor and Airtricity worked closely with the local authorities, community and conservation bodies in the development of the project and in particular the siting of the onshore substation. Fluor recognizes and appreciates the communications, support and cooperation of the local communities and intends to maintain a high level of engagement throughout the construction phase.

The Greater Gabbard Offshore Wind Farm Project will feature 140 wind turbines each having a rated capacity of 3.6 MW. The turbines will be supplied by Siemens Wind Power A/S under a separate contract with SSE. Fluor will be responsible for the installation of the turbines which will be mounted on steel monopiles and transition pieces in water depths between 24 and 34 meters.