Germany's E.ON (OTC: EONGY) and Denmark's DONG Energy have agreed to buy out Royal Dutch Shell (NYSE: RDS.A) stake in the London Array offshore wind farm, becoming 50-50 partners in the planned project.

Financial terms of the deal were not disclosed.

In May, the giant wind project was threatened with cancellation when the Netherlands' Shell announced plans to sell its stake and shift its wind power focus to the U.S. (see Shell to exit London Array wind project).

The £2 billion London Array is expected to be the world's largest offshore wind farm, with a planned capacity of 1 gigawatt of power. It will consist of 341 turbines covering 90 square miles in the Thames Estuary, east of London (see U.K. approves two massive windpower projects).

E.ON said the first phase of the project is expected to be completed by the end of 2012, subject to securing a number of important contracts, including agreements for wind turbines.

Shell has committed to leave its staff in the project until the end of this year to enable a smooth transition and handover.

E.ON, which said it plans to invest €6 billion in renewable energy and climate protection projects by 2010, already operates three offshore wind farms with an overall generation capacity of 83 megawatts, with a further 200 MW currently under construction.

DONG's current offshore wind projects include a 209 MW wind farm in Denmark, as well as three projects totaling 324 MW in the U.K.