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Petrofac, Hitachi Energy receive $14 billion agreement from TenneT
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(Reuters) – Petrofac Ltd said on Thursday it was awarded a 13 billion euro ($14.09 billion) framework agreement with Hitachi Energy by Dutch-German electricity grid operator TenneT to supply offshore platforms and onshore converter stations.
(Reuters) – Petrofac Ltd said on Thursday it was awarded a 13 billion euro ($14.09 billion) framework agreement with Hitachi Energy by Dutch-German electricity grid operator TenneT to supply offshore platforms and onshore converter stations.
The multi-year framework agreement, which the oilfield services provider said represents the largest in its history, is part of TenneT’s 2 gigawatt (2GW) high-voltage direct current (HVDC) offshore wind programme in the North Sea.
TenneT has been engaged to connect about two-thirds of the 65 GW in offshore wind capacity targeted by Germany, the Netherlands, Denmark and Belgium by 2030.
The agreement covers six projects, each of which will be executed under a standalone contract valued at over 2 billion euros, split about equally between Petrofac and Hitachi Energy, Petrofac said.
Petrofac also said it would undertake the engineering, procurement, construction and installation of the offshore platforms and elements of the onshore converter stations, while Hitachi Energy will supply converter stations.
($1 = 0.9227 euros)
(Reporting by Muhammed Husain in Bengaluru; Editing by Subhranshu Sahu and Uttaresh Venkateshwaran)
High-voltage direct current (HVDC) is a technology used to transmit electricity over long distances with minimal losses. It converts alternating current (AC) to direct current (DC) for efficient power transmission.
Offshore platforms are structures used for the extraction of oil and gas from beneath the seabed. They are equipped with facilities for drilling and processing hydrocarbons in marine environments.
Converter stations are facilities that convert electrical energy from AC to DC or vice versa. They are essential in HVDC systems for connecting different power grids and improving transmission efficiency.
Renewable energy is energy generated from natural resources that are replenished over time, such as solar, wind, hydro, and geothermal energy. It is considered more sustainable than fossil fuels.
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