ABB, Hitachi in HVDC partnership
ABB and Hitachi to form strategic power grid partnership for HVDC in Japan
ABB and Hitachi to form strategic power grid partnership for HVDC in Japan
ABB and Hitachi have agreed to form a joint venture for high voltage direct current (HVDC) system solutions in Japan. The new entity, to be based in Tokyo, will be responsible for the design, engineering, supply and after-sales services related to the DC system of HVDC projects bringing ABB’s latest technologies to the Japanese market where Hitachi will be the prime contractor.
Hitachi and ABB will take equity interests of 51% and 49% respectively. This is the first step of a strategic partnership between the two companies to contribute to the evolution of Japan’s power network. Hitachi and ABB will explore further strengthening of the relationship and address opportunities to widen the scope for future collaboration.
The joint venture is expected to commence operations in the coming months, subject to the necessary approvals and statutory procedures.
“Since the first development in the 1970s, Hitachi has participated in every HVDC project in Japan and has continued to underpin the stabilisation of the electricity grid. I am confident that the establishment of a new company combining the strengths of Hitachi and ABB will provide a framework for the timely provision of the new technologies required by the Japanese HVDC market. By enhancing and expanding the HVDC business through its partnership with ABB, which has a strong performance record in the global market, Hitachi will continue to contribute to the stabilisation of Japan’s electric power grid.” said Hiroaki Nakanishi, Chairman & CEO of Hitachi.
“ABB pioneered HVDC 60 years ago and has continually pushed the boundaries of this technology,” said Ulrich Spiesshofer, CEO of ABB. “Our presence across half the world’s installed base and our capability to develop and manufacture all major components of the HVDC value chain inhouse have put us in a leading position in the industry. We are proud to enter into this partnership with Hitachi, with a solid reputation and extensive, 100 year experience in the Japanese market. Together we can build on our complementary strengths to play our part in the evolution of Japan’s power infrastructure.”
In Japan, nine HVDC projects were carried out up to 2006, all of them using the LCC type. Now, with the increasing introduction of renewable energy and innovation in electric power systems, demand for VSC-HVDC systems is expected to increase for applications such as wide-area power transmission grids and connection of offshore wind farms.
