Chancellor George Osborne and London Mayor Boris Johnson were at a former gasworks which has been deserted for 40 years to launch the scheme. They say the site in Tottenham can now be built on after they removed planning restrictions to get more homes built quickly.
Fifty thousand new homes will be built, 40% of which will be affordable, housing 250,000 people.
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The station, which saw 44m people commuters use it in 2016/2017, will be transformed into a dining room complete with Christmas decorations.
Part of the monster fatberg will go on display in the Museum of London, while the rest of it will be converted into biodiesel.
Major engineering projects at key London stations mean hundreds of trains will be cancelled or diverted.