Government of Canada Expands Investment in Critical Clean Technology Manufacturing and Clean Energy
October 1, 2025
Total $40 million investment will support expansion of Hitachi Energy Canada, the country’s sole producer of HVDC transformers
Recently, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, on behalf of the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced a $40 million investment through the Strategic Response Fund (formerly Strategic Innovation Fund) in projects to expand Hitachi Energy Canada’s transformer manufacturing facility in Varennes, Quebec; build a state-of-the-art test laboratory; and establish a high-voltage direct current (HVDC) simulation and collaboration centre at the company’s headquarters in the St-Laurent borough of Montréal. entrepreneurs
The Government of Canada is committed to making Canada the world’s leading energy superpower in both clean and conventional energy. Investing strategically in the domestic manufacturing of clean energy technologies will make Canada more globally competitive, create well-paying jobs and secure long-term prosperity.
The Government of Canada’s investment will significantly increase Hitachi Energy Canada’s production capacity, secure the supply of vital grid components and position Canada as a leading hub for HVDC research and development. The expanded project is expected to create more than 500 high-skilled jobs, including additional student co-op placements, and generate significant opportunities for local suppliers, strengthening both economic benefits for Quebec and Canada.
With global demand for large power transformers at record highs and lead times reaching five years, investments like this are essential to maintaining reliable electricity transmission.
Quotes
“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.”
– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
“Canada is competing and winning in the race to build the strongest clean economy. By supporting Hitachi Energy Canada’s expansion in Quebec, we are shoring up our domestic manufacturing capacity, securing the supply of critical grid technologies and creating hundreds of well-paying jobs. Projects like this are proof that Canada has the people, expertise and ambition to be a true energy superpower, delivering reliable electricity to Canadians and clean power solutions to the world.”
– The Honourable Tim Hodgson, Minister of Energy and Natural Resources
“Our expertise in large power transformers is essential to meeting the growing demand for electricity. With nearly half a billion dollars invested over the past two years, including financial support from the governments of Canada and Quebec, we are moving forward with a shared vision to make our Varennes plant the heart of clean energy in Canada.”
– Carla Vicente, Country Managing Director, Hitachi Energy Canada
“Transformers are at the heart of the world’s energy systems. They enable the integration of renewables, the reliable flow of electricity across long distances, and the resilience of power grids in an era of rapid electrification. With this investment in Varennes, and with the valued support of the governments of Canada and Quebec, we are strengthening the country’s role as a global hub for clean energy innovation and manufacturing.”
– Bruno Melles, Managing Director of Business Unit Transformers, Hitachi Energy Canada
Quick facts
- With this additional support through the Strategic Response Fund, the federal investment in Hitachi Energy Canada’s project increases from $30 million to $40 million.
- The total costs of Hitachi Energy Canada’s projects will rise from $164.2 million to $410 million, reflecting the addition of advanced equipment and a new 137,000 sq. ft. (over 12,700 m2) manufacturing building to its project in Varennes.
- Hitachi Energy Canada will increase its commitment to create 67 full-time equivalent (FTE) jobs to 300 FTEs, with the company’s actual target being more than 500 FTEs, and increase the number of student co-op terms from 285 to 305.
- Hitachi Energy Canada’s expansion will support domestic supply chains, enable future reductions in greenhouse gas emissions and help deliver on Canada’s Net Zero Accelerator initiative.
- Hitachi Energy Canada remains the country’s sole producer of HVDC transformers, anchoring key clean energy infrastructure in Quebec.
- The Strategic Response Fund builds on the mandate of the Strategic Innovation Fund, maintaining support for industrial innovation while expanding its focus to include responsive, targeted investment in trade-exposed sectors.
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