Canada invests CAD $40M to expand transformer facility
A CAD $40 million federal investment will support the expansion of Hitachi Energy Canada's transformer manufacturing facility in Varennes, Quebec, alongside the creation of a test laboratory and an high-voltage direct current (HVDC) centre in Montréal.
The funding, provided through the Strategic Response Fund, aims to enhance domestic manufacturing capacity for large power transformers, a crucial component in Canada's electricity infrastructure as global demand continues to increase. Recent demand has extended lead times for transformers up to five years for delivery. Hitachi is the only producer of HVDC transformers in the country.
This additional support increases federal investment in Hitachi Energy Canada's project from CAD $30 million to CAD $40 million, while total project costs are now expected to rise from CAD $164.2 million to CAD $410 million.
"Canada is competing and winning in the race to build the strongest clean economy," said Tim Hodgson, Minister of Energy and Natural Resources.
The expanded project includes the addition of advanced production equipment and the construction of a new 137,000 square foot manufacturing building at the Varennes site.
Hitachi Energy Canada's plans cover not only physical expansion but also the development of a state-of-the-art test laboratory and the establishment of an HVDC simulation and collaboration centre at its Montréal headquarters.
The company's commitment to job creation has increased alongside the project's enlargement, with the company now planning to create more than 500 full-time equivalent (FTE) positions. This marks a significant rise from its previous commitment of 67 FTEs and a large increase from the 300 or so minimum workers required to run operations.
Officials highlighted that the project is expected to generate substantial opportunities for local suppliers, reinforcing the economic benefits for both Quebec and Canada. The manufactured transformers play a key role in the integration of renewables and the long-distance transmission of electricity nationwide.
"Clean, reliable energy is at the centre of our government's plan to position Canada as an energy superpower. Investing in our domestic advanced manufacturing and research capabilities, like those of Hitachi Energy Canada, will strengthen Canada's energy sovereignty and create the jobs and expertise necessary to fortify our grid, which will power Canadian prosperity and economic resiliency," said Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions.
According to a statement, the expanded activities at the Varennes facility are intended to support domestic supply chains, help enable future reductions in greenhouse gas emissions, and contribute to Canada's Net Zero Accelerator initiative. Investments of this scale are central to maintaining reliable electricity transmission and to meeting increasing power requirements amid the shift to renewable sources.
The Strategic Response Fund, formerly known as the Strategic Innovation Fund, continues to support industrial innovation while providing targeted investment in sectors where international competition is particularly strong.
