CAD $6.3 Billion in LNG and Hydrogen Investment. More than CAD $100 Billion in Economic Impact. One Strategic Choice for Canada.
Press Release
Choosing Hanwha Ocean Means Partnering with a Country That Is Increasingly Investing in Canada's Energy, Resource and Industrial Future
Ottawa, ON, June 4, 2026 — The Republic of Korea and Canada are deepening cooperation in energy resources, critical minerals, supply chain resilience, and strategic industrial development, reflecting the growing importance of the bilateral economic relationship.
On June 2, the Governments of Canada and the Republic of Korea announced an expansion of cooperation across energy security, critical minerals, strategic resource investments, and supply chain partnerships. The announcement builds on existing collaboration between the two countries and highlights a shared commitment to strengthening long-term economic and industrial ties.
The announcement followed a meeting between Canada's Minister of Energy and Natural Resources, Tim Hodgson, and the Republic of Korea's Chief of Staff to the President and Special Envoy for Strategic Economic Cooperation, Kang Hoon-Sik, as well as the Korea–Canada Energy and Resource Supply Chain Forum held in Ottawa.
The forum brought together senior federal and provincial government officials, industry leaders, investors, and representatives from Canada's energy, mining, infrastructure, and technology sectors to discuss opportunities for expanded cooperation in energy, critical minerals, hydrogen, advanced manufacturing, and strategic resource development.
The June 2 announcement outlined several priority areas for future cooperation, including critical minerals, strategic resource investments, naturally occurring hydrogen research and development, and long-term energy security. The partnership is already generating significant economic activity.
In 2025, energy products became Canada's largest export category to the Republic of Korea, valued at approximately CAD $2.2 billion, while metal ores and non-metallic minerals were Canada's second-largest export category, valued at approximately CAD $1.5 billion.
Speaking at the APMA–Algoma–Hanwha MOU signing ceremony on June 1, Korea's Presidential Envoy Kang Hoon-Sik highlighted Canada's growing role in Korea's long-term energy diversification strategy. Korea has already invested approximately CAD $1.6 billion in the LNG Canada project and is expected to expand that investment to CAD $3.2 billion as future phases advance.
Kang also highlighted plans to increase imports of Canadian crude oil, with Korea expected to import approximately 16 million barrels this year and up to 20 million barrels next year. Korea has also recently eliminated the 3% tariff on Canadian crude oil imports, further strengthening long-term energy trade between the two countries.
The Republic of Korea's broader economic vision for Canada also extends into emerging industries. In an exclusive interview with CTV News, Presidential Envoy Kang Hoon-Sik outlined "Project Beaver," a proposed industrial cooperation initiative linked to Hanwha Ocean's CPSP proposal.
According to Kang, the initiative would involve more than CAD $3.1 billion in investment and support the creation of approximately 9,000 jobs through the development of a Canadian hydrogen transportation ecosystem, including manufacturing hydrogen trucks. The proposal indicates plans for a hydrogen liquefaction facility in British Columbia, a network of hydrogen refueling stations across British Columbia and Alberta, and a hydrogen-powered commercial vehicle manufacturing facility in Ontario. Kang described the initiative as an example of the broader economic opportunities that could accompany deeper industrial cooperation between Canada and the Republic of Korea.
Hanwha Ocean is supporting these objectives through its broader engagement in Canada's energy sector, including engineering collaboration on the Fermeuse LNG project in Newfoundland and Labrador and participation in emerging LNG export opportunities in Western Canada. Leveraging decades of experience in offshore energy infrastructure, floating LNG facilities, shipbuilding, and marine engineering, the company brings capabilities that can support the development and export of Canadian energy resources to global markets.
The company's approach to CPSP reflects the same long-term perspective.
Independent analysis estimates that Hanwha Ocean's CPSP proposal submitted in late April could generate CAD $96.3 billion in GDP impact and support more than 433,000 Canadian job-years over the initial acquisition period from 2026 to 2044. The proposal is designed to create long-term economic benefits through industrial partnerships, supply chain development, workforce growth, technology collaboration, and sustained investment across Canada.
Importantly, these estimates do not include the potential economic impact of future defence equipment manufacturing opportunities involving APMA member companies, as well as the recently-announced LNG and Hydrogen investments, which are currently being evaluated and could further expand the proposal's economic benefits to Canada. In fact, Flavio Volpe, President of APMA, while speaking to the media after signing the MOU with Algoma and Hanwha on June 1, stressed that this partnership will potentially create 30,000 direct and indirect jobs in Ontario.
In addition, Hanwha plans to establish a Venture Capital Fund (VCF) to support the investment and growth of innovative Canadian companies across defence, shipbuilding, artificial intelligence, aerospace, nuclear technologies and other advanced technology sectors. This will in effect help strengthen Canada's industrial base and foster the next generation of high-growth industries.
Hanwha Ocean's proposal also provides Canada with a clear pathway to recapitalize its submarine fleet on an accelerated timeline. The company has committed to delivering the first four submarines by 2035, with the capacity to deliver all 12 submarines by 2043.
Combined with the broader industrial, energy, and economic cooperation taking shape between Canada and the Republic of Korea, Hanwha Ocean believes its proposal represents a nation-building opportunity—one that strengthens Canada's defence capabilities while expanding industrial capacity, creating high-value jobs, attracting long-term investment, and positioning Canada for sustained economic growth and competitiveness in the decades ahead.
About Hanwha Ocean
Hanwha Ocean is a leading global shipbuilder with more than four decades of experience in complex naval and commercial shipbuilding programs. Supported by its large-scale, integrated shipyard in Geoje, South Korea that spans 5-square kilometers and has more than 31,000 employees, the company combines proven industrial capacity with operational experience to deliver modern, in-service naval platforms backed by a resilient through-life support model.Since its establishment in 1973, Hanwha Ocean has delivered more than 1,400 vessels worldwide and has built deep expertise in the design, construction and sustainment of submarines and surface combatants for the Republic of Korea Navy. The company builds approximately 45 commercial and naval ships each year.
www.HanwhaOcean.com/en
About the KSS-III Canadian Patrol Submarine
Hanwha Ocean’s KSS-III is a proven, in-service, in-active production submarine that fully meets and exceeds all requirements for the Canadian Patrol Submarine Project (CPSP). These include superior underwater surveillance capability and deployability in the Arctic with extended range and endurance that will provide stealth, persistence and lethality to ensure that Canada can detect, track, deter and, if necessary, defeat adversaries in all 3 of its oceans.
Importantly, Hanwha Ocean has the fastest delivery schedule, able to deliver four KSS-III submarines to fully replace Canada’s current Victoria Class fleet before 2035 if on contract in 2026. Earlier retirement of the Victoria Class fleet will result in estimated savings of approximately $1 Billion on maintenance and support costs. The additional 8 submarines will be delivered at a rate of one per year, meaning the entire fleet of 12 submarines will be delivered to Canada by 2043. No other option can come anywhere close to this delivery schedule.
www.KSS-III.ca