Hitachi Energy is planning to invest an additional $4.5 billion in manufacturing, engineering, digital, R&D and partnerships by 2027, doubling the investments done in the last three years, to accelerate the energy transition.
The investment, complementing the recently announced $1.5 billion investment to ramp up global transformer production, is expected to enable Hitachi Energy to meet customers’ commitments and market demand, increasing its global R&D, engineering and manufacturing capacity of transformers, high-voltage direct current (HVDC) and high-voltage products.
It is also set to support the deployment of power electronics-based solutions, grid automation and software solutions, and services in line with the Hitachi Energy 2030 Plan. Investments will also go into partnerships, supply chain, digitalization and automation.
Hitachi Energy is investing around $330 million to expand and modernize its factory in Ludvika and a new campus in Vasteras, Sweden, across all product portfolios. The Ludvika factory, with over 120 years of innovation, manufactures transformers, high-voltage products and HVDC systems, and will expand by more than 30,000 square meters, enabling new manufacturing capacity of large transformers to meet the deliveries of key HVDC projects.
A new campus in Vasteras will accommodate 1,800 employees, including an R&D center and a production facility for grid automation, allowing the workforce in Sweden to additionally grow by 2,000.
“Electricity will be the backbone of the entire energy system and the change is happening faster than many thought possible. New business models, harmonization of designs, along with partnerships are key drivers for the increase in the pace of change,” said Claudio Facchin, CEO of Hitachi Energy.
“Technology is not the bottleneck and electrification is creating unprecedented demand for power grids systems combined with digital solutions and services. As the market leader, we are responding with an unprecedented level of investment, people and innovation to meet that demand.”
In terms of recent activities, Hitachi Energy signed framework agreements with RTE in France, RWE in Germany, and Marinus Link in Australia which will, with a circa 345-kilometer cable route HVDC system, enable the flow of renewable power in both directions between the Victorian and Tasmanian states.
Hitachi Energy will supply its HVDC Light voltage source converter (VSC) stations in the first stage of the Marinus Link project.
In addition, it was reported earlier today that the company had signed initial work contracts with SSEN Transmission for pre-construction work related to two Scottish subsea links, ensuring the projects remain on track for commissioning in 2030.