| Work Detail |
To help meet demand for transformers, the Government of Quebec is helping with funding for a testing facility as well as an engineering and design centre.
Hitachi Energy today announced plans to upgrade and modernize its power transformer factory in Varennes, and other facilities in Montreal, Canada, to help address the major transformer shortage in North America.
More than $100 million includes funding from the Government of Quebec through Investissement Quebec to establish a state-of-the-art test facility for large power transformers and a high-voltage direct current (HVDC) engineering and design centre. Hitachi expects the expansion to create about 70 jobs.
The transformer shortage is being felt in countries around the world, but it is especially acute where clean energy and energy storage systems are expanding rapidly. Other causes of the shortage are the lack of raw materials, delays after the pandemic, labor limitations and transportation problems, among others.
The Varennes plant is Hitachi Energys main manufacturing center for large power transformers in North America. The facilities have been in operation since 1971, occupy more than 2.78 hectares and employ approximately 330 people.
The company views the establishment of a new 1.2 hectare transformer testing facility at the Varennes manufacturing center as a key element of the companys efforts to meet the growing demand for sustainable energy solutions in the province. The testing facility is expected to be completed before the end of 2027.
This initiative aligns with Quebecs broader strategy to meet its ambitious energy goals, including the need for more than 150 TWh of additional energy to achieve carbon neutrality in 2050, approximately double what Quebec currently consumes.
“Globally, demand for transformers and electrical equipment continues to grow at an unprecedented scale… In addition to our global investments, the support of the Government of Quebec will help address the growing demand for transformers in North America to support the “fast-growing sectors such as renewable energy, data centers and industrial electrification, as Quebec reinforces its role as a key player in the energy transition,” said Bruno Melles, Transformers Business Unit, CEO of Hitachi Energy.
The investment in transformer facilities in Canada closely follows the companys investments of more than $1.5 billion to increase its global transformer manufacturing capacity to keep pace with growing demand and support long-term plans and electrification efforts. Some $180 million of that investment, for example, will go toward building a new state-of-the-art transformer factory in the Vaasa region of Finland.
In the US, Hitachi Energy recently announced plans to invest more than $37 million to expand and modernize its power transformer manufacturing facility in South Boston, Virginia. In addition to its own funds, Hitachi Energy has received financial support from the Commonwealth of Virginia and Halifax County, where the plant is located. The company also plans to invest more than $10 million to expand and modernize its 50-year-old distribution transformer manufacturing facility in Jefferson City, Missouri, to provide additional capacity and enhance its manufacturing capabilities. |
