Manufacturing giant Siemens will invest £160m in wind turbine production and installation facilities in Hull and East Riding.
The German firm had been working on plans to invest £80m, which would have led to 700 jobs, but it has decided to revise its plans, giving a boost to the offshore wind industry.
The work will be spread across two sites comprising the previously announced Green Port Hull project construction, assembly and service facility and a new rotor blade manufacturing facility in nearby Paull, in East Riding.
Siemens will invest £160m across the two locations and its port partner Associated British Ports (ABP) is spending a further £150m in the Green Port Hull development. The combined investments of £310m will create up to 1,000 jobs directly, with additional jobs during construction and indirectly in the supply chain.
Siemens said it will be the first manufacturing plant of its kind for the firm's next-generation blade technology designed for wind turbines. Each rotor blade is 75 metres long and when rotating covers an area the size of two-and-a-half football pitches.
Michael Suess, member of the managing board of Siemens and chief executive of its energy sector, said: "Our decision to construct a production facility for offshore wind turbines in England is part of our global strategy. We invest in markets with reliable conditions that can ensure that factories can work to capacity.
"The British energy policy creates a favourable framework for the expansion of offshore wind energy. In particular, it recognises the potential of offshore wind energy within the overall portfolio of energy production.
"The offshore wind market in Great Britain has high growth rates, with an even greater potential for the future. Wind power capacity has doubled here within two years, to roughly 10GW. By 2020, a capacity of 14GW is to be installed at sea alone to combine the country's environmental objectives with secure power supply. Projects for just over 40GW are currently in the long-term planning."
Roland Aurich, chief executive of Siemens, said: "Being able to further increase our presence in the UK with this significant commitment is great for Siemens, for the UK economy and for future generations, who will benefit from more secure and sustainable, low carbon energy."
Siemens employs around 13,700 workers in the UK, including 4,000 in the energy sector.
Leader of Hull City Council Stephen Brady, said: "The project is very complex and it has taken a great amount of time and effort by many parties to get to this stage. The team at Hull City Council have played a major role, working with Siemens and ABP to make the development a reality and confirming Hull as the cornerstone in establishing the Humber as the UK's Energy Estuary.
"There is now an optimism and confidence in the air throughout the city which we have been working towards for many years."
RenewableUK chief executive Maria McCaffery said: "This is a major coup for the British wind industry – It's the green-collar jobs game-changer that we've been waiting for.
"Attracting a major international company like Siemens to the UK, creating 1,000 jobs manufacturing turbines at two sites in Yorkshire, proves that we can bring the industrial benefits of offshore wind to Britain. This is just the start – where Siemens are leading, a cascade of others will follow – and we'll see very significant growth in the UK supply chain."
Nicola Walker, the CBI's director for business environment, said: "This investment is great news for Hull with 1,000 new manufacturing jobs created. It shows the UK is well placed to become a world leader in the construction and development of renewable energy generation.
"Getting Royal Assent for electricity market reform was hard work, but now we're starting to see the benefits of making the UK a more attractive place to invest."