Hitachi Energy Plans To Invest $4.5 Bn In Clean Energy By 2027

Hitachi Energy Plans To Invest $4.5 Bn In Clean Energy By 2027

Switzerland-based Hitachi Energy recently announced its plan to invest an additional $4.5 billion in manufacturing, engineering, digital, R&D, and partnerships by 2027. This is double the investments made by the company in the last three years.

This investment complements the company’s recently announced $1.5 billion investment in April this year to ramp up global transformer production. These investments can enable the company to meet customers’ commitments and market demand. It is also expected to increase the global R&D, engineering, and manufacturing capacity of transformers, high-voltage direct current (HVDC), and high-voltage products.

It plans to support the deployment of power electronics-based solutions, grid automation, software solutions, and services in line with the Hitachi Energy 2030 Plan. These investments is also expected to also go into partnerships, supply chain, digitalization, and automation, which are enablers to support capacity expansion and increase speed to market.

The company also announced that it 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.

This is especially to enable the new manufacturing capacity of large transformers to meet the deliveries of key HVDC projects. A new campus in Vasteras can accommodate 1,800 employees, including an R&D center and a state-of-the-art production facility for grid automation. The workforce in Sweden will additionally grow by 2,000 to support the accelerating energy transition.

Just in the last month, key the company announced its HVDC projects to meet rapidly growing market demand. Underpinned by new scalable business models developed by Hitachi Energy, framework agreements were signed with RTE in France, RWE in Germany, and Marinus Link in Australia. This was in addition to a service contract signed with Pattern Energy in the US. The company also announced the Sa. Co.I.3 interconnection between Italy and France, another industry-leading multi-terminal solution.

Governments, industries, and consumers are accelerating the switch from fossil energy to electricity to power transport, building heating and cooling, and industrial processes. Decision-makers and operators require real-time grid data for insights and collaboration. Digitally enabled transformers, switchgear, substations, converter stations, Lumada Asset Performance Management and digital twin data platforms like IdentiQ™ are critical for a more sustainable, flexible, and secure energy system. The company is also leveraging synergies between Hitachi Energy and Hitachi Digital to provide a unique position across IT, OT, product, and service capabilities to support our customers throughout the entire lifecycle.