Ørsted and Hitachi Energy extend framework agreement for offshore wind farms

Features | 06.09.2023 | 2 min read

^{From left: Per Leth Hansen, Global Account Manager for Ørsted at Hitachi Energy, Johan Söderström, Executive Vice President and Head of Regions, Europe, Middle East and Africa at Hitachi Energy, Sebastian Hald Buhl, Ørsted’s country manager for Sweden, Tobias Hansson, Country Managing Director at Hitachi Energy in Sweden and Sepideh Chekad, Project Manager for the Power Transformer delivery of Hornsea 3}

Hitachi Energy and Ørsted extend their long-standing collaboration for offshore wind farms for three more years by extending a framework agreement to support Ørsted’s global offshore wind farms. Ørsted’s portfolio includes the 1.5GW Skåne Offshore Wind Farm in Sweden, subject to award to Ørsted. The agreement builds on a long-standing collaboration and reflects Ørsted’s and Hitachi Energy’s commitment to accelerating the energy transition in Sweden, at scale and with speed.

At a visit to Hitachi Energy’s factory in Ludvika in Sweden, Ørsted’s country head of Sweden, Sebastian Hald Buhl, and Hitachi Energy’s Head of Europe, Middle East and Africa, Johan Söderström, along with Country Managing Director, Tobias Hansson, announced that the existing framework agreement between the companies is being extended for three years to continue supplying parts to Ørsted’s global portfolio of offshore wind projects, including Skåne Offshore Wind Farm, subject to agreement.

This extension of the framework agreement builds on Ørsted’s close relationship with Hitachi Energy as a global technology leader and the key partner to the offshore wind industry. For a decade now, Hitachi Energy has supplied several orders from Ørsted, including a substantial contract for the entire transmission system for Hornsea 3 in the UK, the world’s largest offshore wind farm.

The Skåne Offshore Wind Farm will be developed 22-kilometers (km) south of Ystad and Trelleborg in Sweden’s exclusive economic zone (EEZ). The wind farm’s installed capacity will be 1.5 GW, with an annual production of 7-terrawatt hours (TWh). The electricity will be able to cover half of Skåne’s demand.

Ørsted has the industry’s deepest ties with the offshore wind supply chain, which today’s announcement reflects. Hitachi Energy in Ludvika has some of the world’s leading capabilities with equipment for offshore wind, and I’m pleased that we once again collaborate closely with the Swedish supply chain, where we’ve already invested more than SEK 20 billion. Ørsted is developing the 1.5GW Skåne Offshore Wind Farm, and pending the government’s final approval of the project, we expect to deliver investments of minimum 25 billion SEK to realise that project

Sebastian Hald Buhl, Ørsted’s country manager for Sweden

Hitachi Energy delivered transmission equipment to Ørsted’s Hornsea 1 and Hornsea 2 offshore wind farms in the UK. Both broke the world record as the largest offshore wind farm. Ørsted is developing the world’s single largest offshore wind farm Hornsea 3 (2,800 MW), where Hitachi Energy is supplying from Ludvika among other locations in Europe and globally.

We are honored to have the strong vote of confidence from Ørsted and look forward to deepening our collaboration even further. Ørsted, as a leader in the build-out of offshore wind, is a long-standing partner of Hitachi Energy. The extension of the frame agreement shows our commitment to keep accelerating the Swedish and European energy transition.

Johan Söderström, Head of Europe, Middle East and Africa at Hitachi Energy based in Sweden

As previously announced, we plan to employ more than 2000 new employees during the next 2 years in Sweden and this agreement supports our expansion plans.

Tobias Hansson, Country Managing Director, Hitachi Energy

The long-term collaboration between Ørsted and Hitachi Energy also encompasses the provision of Hitachi Energy’s offerings like transformers, high-voltage switchgear, and power quality systems, along with digital innovations including energy market management and automation and communication systems.

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