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Press Release Montreal, Canada 15-07-2024

3 min read

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

Visualization of the Hitachi Energy Transformer Test Lab in Varennes, Quebec
  • Canadian Government investment complements funding from the Province of Quebec to strengthen Hitachi Energy’s capabilities to accelerate the energy transition
  • State-of-the-art simulation center will strengthen Hitachi Energy HVDC leadership and support customers in Canada, North America and globally
  • New test lab for Hitachi Energy’s power transformer factory in Varennes

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. 

In a Net Zero future, Canadian electricity generation capacity will need to be two to three times greater than today. Hitachi Energy’s transformers and HVDC technology will play a key role in expanding Canadian and North American electricity capacity.

 

Today’s investment supports the key technologies that will enable a stronger, greener, more sustainable economy.

Honorable François-Philippe Champagne
Minister of Innovation, Science and Industry

We are thrilled to have received this funding from the Canadian Government to help support the further expansion of our facilities and associated job creation.

 

Quebec is an important hub for the clean energy transition in North America, and the new HVDC simulation center will provide us with critical capabilities to support the urgent need for additional transmission capacity both in Canada and throughout North America.

Carla Vicente
Country Managing Director
Hitachi Energy Canada

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.

About Hitachi Energy

Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We are advancing the world’s energy system to be more sustainable, flexible and secure and we collaborate with customers and partners to enable a sustainable energy future – for today’s generations and those to come. Hitachi Energy has a proven track record and unparalleled installed base in more than 140 countries, serving customers in utility, industry, transportation, data centers and infrastructure sectors. With innovative technologies and services including the integration of more than 150 gigawatts of HVDC links into the power system, we help make the energy value chain more efficient, making electricity more accessible to all. Together with stakeholders across sectors and geographies, we enable the digital transformation required to accelerate the energy transition towards a carbon-neutral future. Headquartered in Switzerland, we employ around 45,000 people in 90 countries and generate business volumes of around $13 billion USD.

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About Hitachi, Ltd.

Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.

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