Hitachi Energy is strengthening its supply chain for next-generation high-voltage grids through a new strategic partnership with Japan’s Daikin Industries, securing European production of a critical gas component for its SF6-free grid technology.

 

Under a memorandum of understanding, Daikin Chemical Europe GmbH will supply C4-FN, a specialty gas component used in insulating gas mixtures for Hitachi Energy’s EconiQ portfolio. Production will begin in 2027 at Daikin Refrigerants Frankfurt GmbH’s facility in Frankfurt, Germany.

 

The agreement is designed to secure long-term supplies of the critical material while expanding Hitachi Energy’s manufacturing and sourcing footprint in Europe.

 

The move comes as utilities and industries accelerate efforts to modernize power grids while cutting their environmental impact.

 

Sulfur hexafluoride, or SF6, has long been used in high-voltage electrical equipment because of its strong insulation and switching properties. But it is also an extremely potent greenhouse gas, with a global warming potential 24,300 times that of CO2.

 

Hitachi Energy says its EconiQ technology, which uses C4-FN-based gas mixtures, can reduce CO2-equivalent emissions by 99 percent compared with conventional SF6-insulated equipment, while maintaining the same technical performance, reliability and compactness.

 

Demand for the technology is already expanding rapidly. Hitachi Energy says EconiQ has secured more than 4,000 orders across 40 countries as utilities and industrial customers seek cleaner alternatives for grid infrastructure.

 

To keep pace, the company is pursuing a multi-sourcing strategy for key materials. Adding Daikin as a European supplier will complement existing qualified sources in Asia and create a broader, more resilient supply network.

 

"As the demand for eco-efficient equipment continues to grow around the world, strengthening our supply chain is essential," said Markus Heimbach, CEO, High Voltage Products Business Unit, Hitachi Energy. "Adding a world-classproduction site in Germany enhances supply resilience and supports the manufacturing of clean energy technologies in Europe. We want to be sure that we can continue meeting customer demand."

 

"This agreement reflects a shared commitment to supporting the energy transition through innovation, quality, and long-term collaboration," said Yasuhisa Hirao, General Manager, Chemicals Division, Daikin Industries, Ltd. "We are proud that our group company, Daikin Refrigerants Frankfurt GmbH, will produce an essential component of the global value chain for power grids."

 

Daikin brings nearly a century of chemical manufacturing experience and a supply network spanning Asia, North America and Europe. The company has also set long-term sustainability goals under its Environmental Vision 2050, including greenhouse gas reduction targets certified by the Science Based Targets initiative.

 

The new Frankfurt production capacity is expected to become available in 2027, giving Hitachi Energy another regional source for materials underpinning its SF6-free grid technologies.

 

The partnership comes as the global power sector faces growing pressure to expand electricity infrastructure while reducing emissions — putting cleaner, scalable high-voltage technologies at the center of the energy transition.