Samsung C&T said Monday that it has signed a memorandum of understanding with Switzerland’s Hitachi Energy to strengthen collaboration and explore opportunities in the high-voltage direct current sector.

HVDC is a method of converting alternating current generated at a power plant into high-voltage direct current for transmission. It is a key technology for long-distance, large-scale power transmission with low energy loss and high stability.

Hitachi Energy -- the market leader in power control systems and electrical equipment -- has been collaborating with Samsung C&T on a 3.5 trillion won ($2.4 billion) undersea HVDC project in the United Arab Emirates. The two companies are now looking to combine Samsung C&T’s expertise in engineering, procurement and construction with Hitachi Energy’s power system design and manufacturing capabilities, according to the company.

Samsung C&T said the partnership will focus on securing opportunities in emerging HVDC markets, including the Middle East, Southeast Asia and Europe, as well as pursuing potential projects in South Korea. The global HVDC market is expected to reach 159 trillion won ($110 billion) by 2030.

“This partnership strengthens our collaboration and enhances our ability to innovate in the HVDC market,” said Kim Sung-joon, executive vice president of Samsung C&T. “We aim to achieve sustainable growth and expand our presence in this critical sector.”

Hitachi Energy Korea President Choi Seok-hwan also said the collaboration would enable both companies to play a leading role in the growing HVDC market. “This agreement marks a significant step forward for both parties,” he said.