Siemens will invest £310m in a wind turbine assembly plant in Hull in a substantial boost to northern manufacturing and the coalition government's shaky record on green energy.
The German company expressed an interest in building the plant three years ago but its refusal to make a firm commitment prompted fears the project would never happen.
David Cameron will on Tuesday welcome the decision to go ahead by Siemens - and its partner Associated British Ports - as a "massive vote of confidence" in the government's economic plan.
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The investment will create up to 1,000 jobs as well as work in construction and the supply chain.
Ed Davey, the energy secretary, will say the Hull project "we will help to keep consumer bills down as we invest in home-grown green energy and reduce our reliance on imports".