Government of Canada invests $30 million (CAD) in Hitachi Energy HVDC simulation center and transformer factory modernization

Hitachi Energy Canada today announced that it has received $30 million (CAD) in funding from the Government of Canada to support the establishment of a new HVDC simulation center in Montreal and to upgrade and modernize its power transformer factory in Varennes.

These projects will help address the fast-growing customer demand for sustainable energy throughout North America. This additional funding from Canada’s Strategic Innovation Fund is part of an overall $140 million (CAD) investment announced in April, including funding from Investissement Quebec.

This investment is in line with Hitachi Energy’s recent announcements to invest an additional $4.5 billion by 2027 to accelerate the clean energy transition and support the long-term plans and electrification efforts, as well as the company’s $1.5 billion investments to ramp up global transformer production in the same timeframe.

HVDC technology is the key enabler for integrating large-scale renewable electricity into power grids. The new simulation center in Montreal will help shorten the time to market for large transmission projects by employing virtual testing of HVDC systems before installation.

The new simulation center is expected to be completed before the end of 2027. When completed, it will provide a digital representation of its HVDC control and protection system, including real-time transmission network simulation. Moreover, it will enable collaboration with local and international customers to design, model, and test their systems, improving the deployment time for large and complex projects. This initiative aligns with Canada’s goal to achieve carbon neutrality by 2050. 

The Varennes facility is Hitachi Energy’s premier manufacturing location for large power transformers in North America, supporting national and regional power grids, and serving unique HVDC transmission projects like Champlain Hudson Power Express and the modernization of the Châteauguay HVDC system, raising the power conversion capacity of this link between Quebec and New York State by 50 percent while increasing its efficiency and controllability. Establishing a new onsite transformer testing facility in Varennes is a critical element of the company’s efforts to meet the growing demand for sustainable energy solutions in the province.

The Varennes factory designs and engineers a vast range of superior-quality transformers, including large power step-up transformers, auto-transformers with very high voltage, shunt reactors, and transformers for static compensators and high-voltage direct current (HVDC) transmission systems. The location’s manufacturing capacity ranges from 100 to 1,200 megavolt-amperes (MVA) and its operating voltage is as high as 800-kilovolt (kV), among the highest in the world.

Hitachi Energy employs more than 550 engineers and highly skilled manufacturing employees in Canada at its three facilities in Varennes, Montreal, and Quebec City and has more than 1,100 employees nationwide.