RWE has signed framework agreements with Hitachi Energy and Aibel for the joint supply of three high-voltage direct current (HVDC) systems for RWE offshore wind farms.
The long-term agreements relate to secured HVDC systems are designated for offshore wind projects from RWE’s global development pipeline, which are to be connected to the grid at the beginning of the next decade.
A signing ceremony held in Hamburg, Germany celebrated the partnership between the three companies.
HVDC systems allow electricity transmission from offshore wind farms to onshore connection points.
The agreements include the supply of HVDC systems and construction of the actual platforms.
The onshore construction work will be contracted during the development phase of the projects.
Hitachi Energy will supply its voltage source converter (VSC) systems to convert alternating current (AC) to direct current (DC) for efficient long-distance transmission to shore, where it will be converted back to AC for the grid.
Aibel will be responsible for the Engineering, Procurement and Construction (EPC) on the design, construction, and commissioning of the offshore platforms.
Sven Utermöhlen, chief executive for RWE Offshore Wind, said: “The deployment of offshore wind is crucial to reach climate protection targets.
“As RWE, we continue to drive forward the expansion of offshore wind energy in Europe and worldwide, because we believe in its long-term fundamentals.
“Through our partnership with Hitachi Energy and Aibel, we are able to secure early the necessary engineering and production capacity for three major HVDC systems to ensure future offshore wind farms can be integrated into the grid.
“Given the challenging market situation, this type of agreement is exactly what we need to succeed.”
The framework agreements allow Hitachi Energy and Aibel to manage the resources required to deliver the three HVDC systems, such as securing the supply chain, hiring workforce, allocating engineering and manufacturing capacity and ordering materials ahead of time.
The agreements provide RWE with the potential to procure additional HVDC systems for future offshore wind projects worldwide.
Niklas Persson, managing director at Hitachi Energy’s Grid Integration business, said: “We’re pleased to have been selected by RWE in this agreement to allow countries to achieve their carbon neutrality goals.
“The energy transition requires us to deploy innovative solutions at scale and speed.
“This new business model reflects our strategic shift to becoming more of a partner to support our customers in their effort to strengthen the power grids for the integration of increased clean renewables into the energy system.”
Mads Andersen, president and chief executive at Aibel, added: “The agreement with RWE confirms that we have a competitive concept developed in collaboration with Hitachi Energy, and a reliable common delivery model with a balanced risk-reward profile.
“The capacity reservation provides predictability and further strengthens our position as a leading supplier to the offshore wind market.”