Siemens will commit £160m to the scheme with Associated British Ports investing a further £150m.

The cash will be spent on the new port facility in Alexandra Dock and in a new rotor blade manufacturing facility in Paull.

The three-year building programme at the port will involve construction of a 600m long quay on the River Humber, reclaiming 8 hectares of foreshore and dredging 62m wide and 11m deep berths.

A winner is set to be announced for this £90m package of works shortly.

Another part of the project will also involve refurbishing several existing buildings and constructing a new 23m high shed, in a separate work package worth around £10m.

Bids are due in for this phase at the end of next month.

Graham Construction is understood to be bidding for the civils and building elements of the port project, with Morgan Sindall and Sir Robert McAlpine also eyeing building work.

Up to 300 jobs will be created during construction, with the manufacturing and assembly plant eventually employing 700 highly skilled engineering workers.

Finbarr Dowling, Siemens project director for Hull, said: “We are delighted that the plans for Alexandra Dock have been approved today by Hull City Council. These works represent an important step in the overall programme which will be progressed in coming months and years.”

Councillor Steven Brady from Hull City Council said the decision marks a crucial step forward in plans for establishing Hull as the UK’s Energy Estuary.

“We are delighted with the plans presented by Siemens and ABP for the proposed wind turbine assembly and service facility at Alexandra Dock and we look forward to working with our partners on this key project,” he said.

“This will not only make a huge difference to the city’s economy, but also help transform green energy and ensure that Hull is the market leader for the UK’s offshore wind industry.”