REG-Petrofac Limited Petrofac Limited: PETROFAC AND HITACHI ENERGY SECURE FRAMEWORK WORTH APPROXIMATELY 13 BILLION EUROS
30/03/2023 07:15
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Petrofac Limited ( PFC)
Petrofac Limited: PETROFAC AND HITACHI ENERGY SECURE FRAMEWORK WORTH
APPROXIMATELY 13 BILLION EUROS
30-March-2023 / 07:00 GMT/BST
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Press Release
30 March 2023
PETROFAC AND HITACHI ENERGY SECURE LANDMARK OFFSHORE WIND FRAMEWORK WORTH
APPROXIMATELY 13 BILLION EUROS
• Petrofac and Hitachi Energy have been awarded a multi-year Framework
Agreement by TenneT as it works to expand offshore wind capacity in
the Dutch-German North Sea
• The Framework Agreement, which represents the largest in Petrofac’s
history, covers six projects. Each project comprises the EPCI of an
offshore HVDC transmission station, onshore converter station and
associated infrastructure
• Each project will be executed under a standalone contract valued at
over 2 billion euros, split approximately equally between Petrofac’s
and Hitachi Energy’s scopes. The first of these contracts has been
awarded alongside the Framework
Petrofac, a leading international service provider to the energy industry,
and Hitachi Energy, a global technology leader, have been selected by
TenneT, the Dutch-German Transmission System Operator, to supply multiple
offshore platforms and onshore converter stations to accelerate the
integration of bulk renewables into European power grids.
Petrofac and Hitachi Energy were awarded the multi-year Framework
Agreement as part of TenneT’s ambitious 2 gigawatt1 (2GW) high voltage
direct current (HVDC) offshore wind programme.
The agreement includes an initial commitment to deploy six record-breaking
renewable integration systems, five of which will connect offshore wind
farms to the Dutch grid and the sixth to the German grid. Each of these
connection systems has a capacity of 2GW and a voltage level of 525
kilovolt – a world-first for offshore wind.
The landmark Framework Agreement represents the largest in Petrofac’s
history. It enables Petrofac and Hitachi Energy to plan in advance, secure
the required resources and yard space, as well as capturing synergies
between successive projects to meet in-service dates.
Petrofac will undertake the Engineering, Procurement, Construction and
Installation (EPCI) of the offshore platforms and elements of the onshore
converter stations. Hitachi Energy will supply its HVDC Light® converter
stations, which convert AC to DC power offshore and DC to AC onshore.
The first contract under the Framework, for the Ijmuiden Ver Alpha
project, was awarded with immediate effect. The second, Nederwiek 1, is
expected to be awarded later in the year. The Framework also includes
projects Doordewind 1, Doordewind 2, Nederwiek 3 and LanWin5, expected to
be awarded over a 2024 – 2026 timeframe.
Sami Iskander, Petrofac’s Group Chief Executive, said: “Today’s
announcement represents an exciting next step in Petrofac and Hitachi
Energy’s collaboration. We have already secured key resource 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.”
Tareq Kawash, who takes over from Sami Iskander as Petrofac’s Group Chief
Executive on 1 April, added: “Today’s award demonstrates the significant
new growth horizon presented by the 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.”
Niklas Persson, Managing Director at Hitachi Energy’s Grid Integration
business said: “This 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.”
Marco Kuijpers, Director Large Projects Offshore TenneT said: “The 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.”
Petrofac and Hitachi Energy began working together in June 2022, to
provide joint grid integration and associated infrastructure solutions to
support TenneT’s 2GW Programme2.
In the same year, Germany, the Netherlands, Denmark and Belgium agreed to
install at least 65 gigawatts of offshore wind energy combined by 2030, as
announced with the inter-governmental Esbjerg Declaration3. At 40
gigawatts, almost two-thirds of this capacity is accounted for by TenneT,
with 20 gigawatts each in the German and Dutch North Sea sectors.
1 1 TenneT’s 2GW Programme
2 2 Hitachi Energy and Petrofac to collaborate in growing offshore wind
market
3 3 The Esbjerg Declaration
ENDS
For further information contact:
Petrofac:
James Boothroyd, Head of Investor Relations
4 James.boothroyd@petrofac.com
Sophie Reid, Group Head of Communications
5 Sophie.reid@petrofac.com
Teneo (for Petrofac):
+44 (0) 207 353 4200
6 petrofac@teneo.com
Hitachi Energy:
Jocelyn Chang
Global Head of Public Relations & Content Strategy
Hitachi Energy
7 jocelyn.chang@hitachienergy.com
NOTES TO EDITORS
About Petrofac
Petrofac is a leading international service provider to the energy
industry, with a diverse client portfolio including many of the world's
leading energy companies. Petrofac designs, builds, manages and maintains
oil, gas, refining, petrochemicals and renewable energy infrastructure.
Our purpose is to enable our clients to meet the world's evolving energy
needs. Our four values - driven, agile, respectful and open - are at the
heart of everything we do. Petrofac's core markets are in the Middle East
and North Africa (MENA) region and the UK North Sea, where we have built a
long and successful track record of safe, reliable and innovative
execution, underpinned by a cost effective and local delivery model with a
strong focus on in-country value. We operate in several other significant
markets, including India, South East Asia and the United States. We have
8,000 employees based across 31 offices globally. Petrofac is quoted on
the London Stock Exchange (symbol: PFC). For additional information,
please refer to the Petrofac website at 8 www.petrofac.com
About Hitachi Energy Ltd.
Hitachi Energy is a global technology leader that is advancing a
sustainable energy future for all. We serve customers in the utility,
industry and infrastructure sectors with innovative solutions and services
across the value chain. Together with customers and partners, we pioneer
technologies and enable the digital transformation required to accelerate
the energy transition towards a carbon-neutral future. We are advancing
the world’s energy system to become more sustainable, flexible and secure
whilst balancing social, environmental and economic value. Hitachi Energy
has a proven track record and unparalleled installed base in more than 140
countries. Headquartered in Switzerland, we employ around 40,000 people in
90 countries and generate business volumes of approximately $10 billion
USD.
https://www.hitachienergy.com
9 https://www.linkedin.com/company/hitachienergy
10 https://twitter.com/HitachiEnergy
About Hitachi, Ltd.
Hitachi drives Social Innovation Business, creating a sustainable society
with data and technology. We will solve customers' and society's
challenges with Lumada solutions leveraging IT, OT (Operational
Technology) and products, under the business structure of Digital Systems
& Services, Green Energy & Mobility, Connective Industries and Automotive
Systems. Driven by green, digital, and innovation, we aim for growth
through collaboration with our customers. The company’s consolidated
revenues for fiscal year 2021 (ended March 31, 2022) totaled 10,264.6
billion yen ($84,136 million USD), with 853 consolidated subsidiaries and
approximately 370,000 employees worldwide. For more information on
Hitachi, please visit the company's website at
11 https://www.hitachi.com.
About TenneT
TenneT is a leading European grid operator. We are committed to providing
a secure and reliable supply of electricity 24 hours a day, 365 days a
year, while helping to drive the energy transition in our pursuit of a
brighter energy future – more sustainable, reliable and affordable than
ever before. In our role as the first cross-border Transmission System
Operator (TSO) we design, build, maintain and operate 24,500 km of
high-voltage electricity grid in the Netherlands and large parts of
Germany, and facilitate the European energy market through our 16
interconnectors to neighbouring countries. We are one of the largest
investors in national and international onshore and offshore electricity
grids, with a turnover of EUR 6.4 billion and a total asset value of EUR
32 billion. Every day our 6,600 employees take ownership, show courage and
make and maintain connections to ensure that the supply and demand of
electricity is balanced for over 42 million people. Lighting the way ahead
together.
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Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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ISIN: GB00B0H2K534
Category Code: MSCH
TIDM: PFC
LEI Code: 2138004624W8CKCSJ177
OAM Categories: 2.2. Inside information
Sequence No.: 233578
EQS News ID: 1596329
End of Announcement EQS News Service
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