The firm behind a scheme to build a wind turbine plant at Sheerness Docks has been awarded a government grant thought to be worth millions of pounds.

Vestas Technology UK has won an undisclosed sum from the £40 million Regional Growth Fund for East Kent, designed to create up to 5,000 jobs and improve the region’s high-speed rail links.

The Danish-owned company revealed in May this year it had signed an agreement with Peel Ports to take over 70 hectares of land at the dockyard to build its V164 7.0MW off-shore wind turbines.

The proposal, which is subject to planning approval and a series of consultations on the suitability of the land, could create up to 2,000 jobs.

Sheppey MP Gordon Henderson, a supporter of Vestas’ scheme, said he was thrilled to hear of the grant package, which was announced by Deputy Prime Minister Nick Clegg last Monday.

He said: “It’s fantastic news. We’ve still a long way to go before we seal the deal, but it’s one more brick in the wall.”

The grant is subject to a number of pre-conditions, including a diligence report, project delivery plan, and state aid clearances from the European Commission.

But a spokesman for Vestas said: “In terms of implications for our proposals at Sheerness, Vestas’ selection is certainly a significant step on the path towards creating the right conditions for us to move ahead.

“But we still need to be confident that the market support will deliver the demand for the finished product.

“We need to see customer commitments for the new turbine in the near term, and we need to see how our planning application, due for submission around Christmas, is determined.”

If the plan gets the go-ahead, a number of dockyard buildings and warehouses will have to be demolished or moved.

There is at least one listed building under threat and Vestas confirmed earlier this year it would be speaking to English Heritage about its future.

However, bosses have stressed they are keen to keep their existing customers in the docks to utilise the available space to its maximum potential.