Hull City council's planning committee approved the plans for the £310 million (EUR 388 million) Green Port Hull plant, which will have turbine manufacturing and service facilities for offshore projects.
The Associated British Ports (ABP) and German manufacturer Siemens are jointly developing the Alexandra Dock site, with the latter committed to spending £160 million on it.
Hull City councillor Steven Brady said the plans would help make Hull "the UK's Energy Estuary," following the council's decision.
Part of the plans includes a plant in nearby Paull, East Riding, which will manufacture blades for Siemens' 6MW offshore turbine. Planning applications for the blade factory will be submitted later this year.
Siemens and ABP signed a memorandum of understanding to develop the Green Port Hull plant in 2011.
Siemens was the first turbine manufacturer to commit to building a large-scale manufacturing plant in the UK to supply the country's offshore sector.