ABB and Hitachi have signed an agreement 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 technology 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 described as the first step in 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" said Hiroaki Nakanishi, chairman & CEO of Hitachi Ltd.
"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 in house have put us in a leading position in the industry. We are proud to enter into this partnership with Hitachi ... together we can build on our complementary strengths to play our part in the evolution of Japan's power infrastructure."
The global HVDC market has seen many projects using line commutated converter technology (LCC) HVDC systems since the 1970s, while the development of voltage source converter (VSC) systems has advanced as a new technology since around 2000. In recent years there has been a
particular focus on using HVDC to connect renewable energy sources. This has seen an deployed across a range of applications. These include the integration of renewable energies from land-based and offshore wind farms, the mainland power supply to islands and offshore oil and gas platforms, city centre in-feeds where space is a major constraint, and cross-border interconnections that often require subsea links. 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.
Linkedin
