Faroe Islands inter-municipal power company SEV is investigating the possibility of developing an up to 120MW offshore wind farm.
The project would be between 96MW and 120MW in size and located near the capital Torshavn, SEV said.
It added that the project would be a joint venture between Faroese energy providers and various businesses and individuals.
Surveys would assess wind conditions, wave impacts and seabed characteristics, as well as environmental impacts.
SEV said that if permits and licences are obtained to develop a project, construction could start in 2023 or 2024 and operations in 2025.
The offshore wind farm would replace at least five onshore wind farms that have been planned as part of the green path towards 100% sustainable electricity generation by 2030.
SEV R&D manager Terji Nielsen said: “An offshore wind farm would speed up the transition to sustainable electricity generation.
“In recent years, we have experienced delays of at least two of three planned onshore wind farms. The NIMBY phenomenon playing a part in these delays.”