Hitachi Energy announces over $100m in upgrade of power transformer factory in Quebec

DUBAI: Hitachi Energy has announced an ambitious upgrade and modernisation of its power transformer factory in Varennes, and other facilities in Montreal, to address fast-growing customer demand for sustainable energy in North America.

More than $100 million (approx. $140 million CAD) in projects around Montreal will include funding from the Government of Quebec through Investissement Quebec.

This investment is in line with Hitachi Energy’s recent announcement to ramp up its global transformer manufacturing capacity to support the long-term plans and electrification efforts.

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 utility-scale renewable energy projects. The establishment of a new on-site transformer testing facility in Varennes is a critical element of the company’s efforts to meet growing demand in the province for sustainable energy solutions.

The additional 130,000 square feet (approx. 12,000 square metres) facility will support the certification of power transformers manufactured in Varennes, serving as an essential part of the final acceptance process for customers. The testing facility is expected to be completed before the end of 2027. This initiative aligns with Quebec’s broader strategy to meet its ambitious energy goals, including the need for more than 150 terawatt-hours (TWh) of additional energy to achieve carbon neutrality by 2050 – around twice what Quebec consumes today.

“Globally, demand for transformers and electrical equipment continues to grow at an unprecedented scale. At Hitachi Energy we are continuously developing our global footprint and capacity to address our customers’ mid- and long-term needs. In addition to our global investments, the support of the Quebec Government will help to address North America’s rising demand for transformers to support fast-growing sectors like renewable energy, data centres, and industrial electrification, as Quebec strengthens its role as a key player in the energy transition,” said Bruno Melles, Business Unit Transformers, Managing Director at Hitachi Energy.

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-ampere (MVA) and their operating voltage reaches as high as 800-kilovolt (kV), which is among the highest in the world.

Transformers play a key role across the power value chain, enabling efficient transmission and distribution of electricity. They are a key component for applications such as integrating renewables, grid interconnections, powering data centres and electrifying transportation, facilitating the decarbonisation of energy systems.

The company’s manufacturing facility in Varennes has been in operation since 1971 and is one of the leading manufacturing locations of power grid equipment in the greater Montreal area. The facility covers over 300,000 square feet (almost 30,000 square metres) and employs around 330 people.

Hitachi Energy Canada employs more than 550 engineers and highly skilled manufacturing employees at its three facilities located in Varennes, Montreal, and Quebec City, and has more than 1,000 employees across Canada.