| Petrofac Limited ( PFC) Press Release
This announcement contains inside information
20 December 2023
PETROFAC AND HITACHI ENERGY ANNOUNCE SECOND PROJECT IN SUPPORT OF TENNET’S 2GW PROGRAMME
Petrofac, a leading provider of services to the global energy industry, and Hitachi Energy, a global technology leader that is advancing a sustainable future for all, announce today the award of the second project under the US$14 billion, multi-year Framework Agreement with TenneT – the Dutch-German Transmission System Operator – to expand offshore wind capacity in the North Sea. The project is to be executed under a standalone contract, with Petrofac’s portion valued at around US$1.4 billion. The companies will work together to deliver Nederwiek 1, a Dutch transmission station which forms part of TenneT’s landmark 2 Gigawatt (2GW) Programme, comprising several high-voltage direct current (HVDC) offshore grid connection systems, each with a transmission capacity of 2 gigawatts. In an initial announcement earlier this year, Petrofac and Hitachi Energy reported the award of the six-project Framework Agreement. Under this landmark agreement, Petrofac will undertake the engineering, procurement, construction, and installation (EPCI) of offshore platforms and elements of the onshore converter stations while Hitachi Energy will supply its HVDC converter stations, which convert AC to DC power offshore and DC to AC onshore. Since the initial announcement, Petrofac’s and Hitachi Energy’s teams have collaborated closely on the preparatory works, reserving production capacity for multiple platforms and HVDC technology, and initiating the detailed design process for the first platform, the Ijmuiden Ver Alpha. Further to the Group’s market update on 4 December, today’s announcement coincides with confirmation that Petrofac has secured the performance guarantee required for the Ijmuiden Ver Alpha contract. The Group remains in active discussion with credit providers and its clients to secure the guarantees required for other new contracts in its portfolio. Additional projects within the TenneT’s 2GW Programme are expected to be awarded at approximately six-month intervals. These are the grid connections landing at Geertruidenberg or Moerdijk (Nederwiek 3) and Eemshaven (Doordewind 1 and Doordewind 2). The sixth project, the German connection LanWin5, will be connected near Rastede, Germany. Commenting on the award, John Pearson, Chief Operating Officer, Energy Transition Projects, Petrofac, said: “We have been collaborating with our partner Hitachi Energy, and client TenneT, on the first project, Ijmuiden Ver Alpha. The award of Nederwiek 1 continues our focus on the standardisation and harmonisation of design and execution that will be central to the ‘design one, build many’ philosophy of the 2GW Programme. By aligning ourselves with TenneT’s objectives, we are creating a blueprint for the rapid deployment of large-scale infrastructure projects crucial to Europe’s energy transition”. Niklas Persson, Managing Director of Hitachi Energy’s Grid Integration business, said: “As a pioneering technology and market leader, we are delighted to collaborate to deliver our HVDC solution for Nederwiek 1, combining world-class energy and digital systems. Our strong collaboration with Petrofac, based on an agile business model, scalable solutions and synergies among projects, allows us to join forces and support TenneT in its ambition to accelerate offshore wind deployment in the North Sea, granting European citizens more sustainable and reliable power.” TenneT’s 2GW Programme is a crucial step in Europe’s transition to a lower-carbon future. Germany, The Netherlands, Denmark, and Belgium have agreed to install at least 65 gigawatts (GW) of offshore wind energy together by 2030. Two-thirds of this (40GW) will be accounted for by TenneT, with 20GW each in the German and Dutch North Seas. TenneT’s innovative 2GW Programme will be vital to reaching these targets and will provide a blueprint for the delivery of future offshore grid connection systems. TenneT’s strategy focuses on standardisation and fostering new contracting models within the supply chain to enable the creation of innovative and scalable solutions that can be quickly and cost-effectively deployed. ENDS
For further information contact:
Petrofac: James Boothroyd, Head of Investor Relations
Sophie Reid, Group Director of Communications
NOTES TO EDITORS 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 8,500 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 www.petrofac.com
About Hitachi Energy
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. We integrate more than 150 GW of HVDC links into the power system, helping our customers enable more wind and solar. Headquartered in Switzerland, we employ more than 40,000 people in 90 countries and generate business volumes of over $10 billion USD. https://www.linkedin.com/company/hitachienergy https://twitter.com/HitachiEnergy
About Hitachi, Ltd. Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the business structure of “Digital Systems & Services” - supporting our customers’ digital transformation; “Green Energy & Mobility” - contributing to a decarbonized society through energy and railway systems, and “Connective Industries” - connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s consolidated revenues for fiscal year 2022 (ended March 31, 2023) totaled 10,881.1 billion yen, with 696 consolidated subsidiaries and approximately 320,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.
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| ISIN: | GB00B0H2K534 |
| Category Code: | CNT |
| TIDM: | PFC |
| LEI Code: | 2138004624W8CKCSJ177 |
| Sequence No.: | 292988 |
| EQS News ID: | 1800593 |
| End of Announcement | EQS News Service |
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UK Regulatory announcement transmitted by EQS Group AG. The issuer is solely responsible for the content of this announcement.