Hitachi Energy Plans To Invest Billions In Manufacturing R&D

Hitachi Energy investing billions in manufacturing R&D partnerships ( Image Credit: Hitachi)
Hitachi Energy today announced its intention to invest billions in manufacturing R&D partnerships by 2027 to accelerate the clean energy transition

After recent high-profile investments in global transformer production, Hitachi has announced its goal of investing US$4.5bn in manufacturing partnerships, research and by 2027 to speed up the clean energy transition.

According to the October 2023 IEA Report, now is a time of increasing pressure for energy manufacturers. The rise of Gen AI and the sheer quantity of digital data used today is necessitating an expansion of data centres, increasing electricity demand. 

It is estimated that the demand created by AI and data centres could double towards 2026. 

The report also indicates that the positive clean energy progress experienced globally could be placed in jeopardy if the world isn’t prepared to adjust to a new global energy economy. A critical component of this successful adjustment is investing in and adapting electrical grids.

Hitachi Energy’s Developments in 2024
  • Order backlog more than tripled to over US$30bn since 2020
  • More than double new investments in manufacturing, engineering, digital, R&D and partnerships across all major markets from 2024 to 2027
  • Around US$330m in capacity expansion, modernisation, and new build in Sweden, across all product portfolios with an additional 2,000 employees
  • Global Technology and Innovation Center in India will increase to more than 4,000 employees to serve more than 40 countries

To tackle this, key HVDC projects have been announced to address growing market demand. Hitachi Energy has signed framework agreements with RTE in France, Marinus Link in Australia and RWE in Germany to support this development through its new, scalable business models. 

The company also announced a service contract with Pattern Energy in the US, and the Sa. Co.I.3 interconnection between France and Italy, to provide an industry-leading multi-terminal solution.

These investments will enable Hitachi to meet market and customer demand, increasing the manufacturing, engineering and global R&D capacity of its transformers and high-voltage products. Hitachi will also finance further deployment of software solutions, grid automation and power electronics-based solutions in line with the company’s Energy 2030 Plan.

Youtube Placeholder

Hitachi has also announced it will invest US$330m into modernising and expanding its flagship factory in Ludvika and introducing a new campus in Vasteras, Sweden across all product portfolios.

With over 120 years of innovation, the Ludvika factory manufactures HVDC systems, high-voltage products and transformers and is set to expand by 30,000 square metres. This will support critical HVDC projects through increased capacity to manufacture large transformers. 

The new campus in Vasteras will accommodate an R&D centre and a state-of-the-art production facility for grid automation, all to help accelerate the transition to clean energy.

****** 

Make sure you check out the latest edition of Manufacturing Digital and also sign up to our global conference series - Procurement & Supply Chain 2024 & Sustainability LIVE 2024
******
Manufacturing Digital is a BizClik brand.

Share

Featured Articles

Top 10: Manufacturing Companies in MEA

Manufacturing Digital takes a look at the top 10 largest manufacturers in MEA, including Sharp, Genetco and Julphar

Manufacturing & Mobility LIVE heads to Chicago in 2025

Manufacturing & Mobility LIVE expands into in-person events, heading to the US with its sister events P&SC LIVE and Sustainability LIVE

What to see and do at GSMA MWC Shanghai 2024

At the 2024 GSMA MWC in Shanghai, guests will learn more about the future of 5G and IoT, as well as the role of mobile connectivity in manufacturing

EV Recycling Driven By Tata Steel, Nucor and Dowa Holdings

Sustainability & ESG

Brooke Weddle: Manufacturing Needs A Rebrand

Production & Operations

Immensa and Intaj Suhar partner to boost Omani manufacturing

Procurement & Supply Chain