Hitachi Energy and Petrofac have been awarded a big multiyear agreement for offshore wind framework by TenneT, a transmission system operator. And with this Hitachi and Petrofac bags offshore wind deals worth £11 billion.
The Framework Agreement is the largest in the history of Petrofac and covers around 6 projects and the first 3 contracts have been awarded alongside the framework. Petrofac is a leading international service provider for the energy industry and Hitachi Energy is a global technology leader.
TenneT, the Dutch-German Transmission System Operator, selected them to supply multiple offshore platforms and onshore converter stations with an aim of accelerating the bulk integration of renewable in the European power grid. Both companies received this agreement as a part of the ambitious 2 gigawatt1 (2 GW) high voltage current and offshore wind programme by TenneT.
An initial commitment of the agreement is to deploy 6 record-breaking renewable integration systems. Out of them 5 will be connected to offshore wind farms in Dutch grid and the 6th will be connected to the German grid.
Both connections have a capacity of 2 GW and a 525-kilovolt voltage level. This will be the first of its kind model in offshore wind energy.
Group Chief Executive of Petrofac, Sami Iskander said, â€œToday’s announcement represents an exciting next step in Petrofac and Hitachi Energy’s collaboration. We have already secured key resources and the yard capacity required to expedite the first two projects in TenneT’s ground-breaking programme. By combining Petrofac’s industry leading EPCI expertise and Hitachi Energy’s well proven technology, we look forward to supporting TenneT to connect larger, more effective wind farms to deliver affordable clean energy for millions of European homes.â€
The new Group Chief Executive of Petrofac, Tareq Kawash, added, â€œToday’s award demonstrates the significant new growth horizon presented by Energy Transition, and the role companies like Petrofac will play. I will be very proud to support Petrofac’s collaboration with Hitachi Energy and delivery of our role on TenneT’s 2GW programme over the coming years.â€
Managing Director of Hitachi Grid Integration business, Niklas Persson said, â€œThis innovative business model will set the course for the integration of a huge amount of offshore wind power and gives visibility of the future. In fact, we are already hiring to expand our global delivery capacity and effectively fulfill these and other orders. We’re proud to be part of this journey and, along with our partner Petrofac, we are setting the benchmark for deploying offshore HVDC technology at scale and with speed.â€
To this Marco Kuijpers, Director Large Projects Offshore TenneT said, â€œThe new long-term approach goes hand in hand with a fundamental change in values towards a strong partnership. This approach enables both sides with more flexibility, technological progress, and planning security. This benefits all parties and secures employment, growth, and the strengthening of supply chains. We can already see that our partners invest in extra resources and facilities.â€
Hitachi and Petrofac bags offshore wind deals worth £11 billion out of which the 1st contract is for the Ijmuiden Ver Alpha project, the 2nd is Nederwiek 1, and other expected projects to be awarded between 2024 and 2026 are Doordewind (1 & 2), LanWin5 and Nederwiek 3.
Each project comprises the engineering, procurement, construction, and installation contract (EPCI) which will be handled by Petrofac. And Hitachi Energy will handle an offshore high-voltage direct current (HVDC) transmission station, associated structure along with onshore converter station.
Execution of each project will be under a standalone contract that is valued at more than 2 billion Euros and split equally between the scopes of Hitachi and Petrofac.