Government of Alberta and Hanwha Energy of South Korea announce plans to collaborate on energy development, industrial expansion and supply chain infrastructure
Press Release + Noah Note
A new Canada–Asia energy and industrial partnership takes shape in Alberta, linking trade, growth, and sovereign capability while achieving objectives of Canada’s Indo-Pacific Strategy
EDMONTON, Alberta, April 21, 2026 – A new partnership between the Government of Alberta and Hanwha is emerging at a pivotal moment for Canada’s economic strategy – one that could expand access to growing Asian markets while strengthening the country’s long-term industrial capacity and strategic resilience.
With the Republic of Korea Government announcing that it will eliminate the 3% import tariff on Canadian crude oil as part of the nation’s plan to enhance its relationship with Canada, including partnership on the Canadian Patrol Submarine Project, the conditions are in place for a major shift in bilateral energy trade. For Alberta, the development presents a timely opportunity to diversify market access – an objective increasingly framed as both an economic and national security priority.
Against this backdrop, the Government of Alberta and Hanwha Energy have entered into a Memorandum of Understanding (MOU) to explore long-term collaboration across energy development, industrial expansion, and supply chain infrastructure. The agreement also includes Hanwha Ocean, Hanwha Aerospace and Hanwha Power, in a coordinated, group-wide effort to support deeper bilateral engagement across multiple sectors.
The MOU signing was attended by Alberta Premier Danielle Smith, Minister of Jobs, Economy, Trade and Immigration Joseph Schow, Minister of Energy and Minerals Brian Jean, and senior executives from Hanwha.
The scope of the MOU between Alberta and Hanwha reflects this integrated approach, covering energy and natural resource development, defence industrial capabilities, and advanced manufacturing and logistics. It also includes scenarios for collaboration across oil and gas, LNG and hydrogen, carbon capture and storage, as well as systems integration and supply chain development—areas central to Canada’s long-term economic competitiveness and energy security.
The structure of the collaboration is designed to evolve over time. In the near term, expanded trade in crude oil and related resources provides a practical foundation for strengthening bilateral ties and enabling market diversification beyond North America. In the next phase, the focus is expected to broaden to include hydrogen, ammonia-based energy carriers, and carbon management infrastructure, supporting both countries’ transition toward lower-emissions energy systems while reinforcing industrial growth and supply chain resilience.
While anchored in energy, the partnership is also intended to extend into broader industrial and strategic domains. Hanwha Ocean’s participation connects the initiative to its bid for the Canadian Patrol Submarine Project (CPSP), positioning cooperation in Alberta as part of a wider effort to support Canada’s evolving Defence Industrial Strategy (DIS), including the development of sovereign industrial capability, long-term in-service support and sustainment capacity, and a more resilient and regionally anchored defence industrial base.
For Canada, the implications extend beyond a single agreement. The convergence of energy policy shifts and growing Indo-Pacific engagement is creating a window for deeper bilateral cooperation. This initiative signals an intent to translate that opportunity into tangible industrial activity—linking resource development with infrastructure investment, supply chain expansion, and long-term capital deployment.
Quotes
“This partnership reflects a long-term view of Canada—not only as an energy partner, but as a strategic industrial counterpart. By aligning capabilities across energy, natural resources, shipbuilding, high technology, advanced manufacturing and other areas, we see an opportunity to contribute to Canada’s economic resilience and future industrial capacity.”– Jae-Kyu Lee, Chief Executive Officer, Hanwha Energy
“Alberta is earning the attention of global partners because we deliver results. This agreement with Hanwha Group creates new opportunities to bring investment into our province, grow high-value industries and support good-paying jobs for Albertans. We are focused on turning partnerships like this into real projects that strengthen our economy.” – Danielle Smith, Premier of Alberta
“On the horizon is major investment with more focus being put on defence manufacturing and energy production. This agreement positions Alberta even stronger as a trusted partner for global investment. By strengthening relationships with international leaders like Hanwha Group, we are supporting economic diversification that leads to real benefit for our province and the people who call it home.” – Joseph Schow, Minister of Jobs, Economy, Trade and Immigration
“Alberta has some of the largest energy reserves in the world. We have the goal of doubling our oil production by 2035 to meet a growing global demand and strengthen energy security for Canada, North American, and our trading partners.” – Brian Jean, Minister of Energy and Minerals
Noah Note: This is the first provincial agreement one of the two CPSP suppliers have made. In the last few weeks Hanwha has been trying to leverage and partner with provincial authorities to bolster their bid. This comes as the Canadian governments has reopened the submitted RFP for a revision period, with both companies having until April 29th to submit their revised proposals.
Part of this comes from a desire to see more economic output being committed too, but also to give both bidders time to revise things in lieu of questions from government and a desire for further clarification. Both companies are now put in the rush to sevure additional partners and add to their bids. Keep in mind that both bids were well over a thousand pages long, with one approaching 2000 pages.
Mid-June is now the new timeframe for an announcement but a decision is likely to be made mid-May from what I hear, that is a preffered supplier will be decided by cabinet. After that contract negotiations will begin, with a hope for a very, very late 2026 award though likely 2027.
Also not mentioned here is the Alberta Defence Team that has been operating since January, and have been very active around the place. I don't know the team well, but they seem great and they've been getting out there enough for me to hear about them a lot. They did not get a shout out, but congrats to them for this.
Obviously securing a provincial partner, especially one like Alberta is a monumental escalation for Hanwha into a domain that we rarely see. Provincial agreements aint common when it comes to Defence procurement, and while the primary focus here in on Energy (because it is alberta lets be real) the reality is that securing some provincial backing goes a way.
Add on the tariff elimination of Alberta crude, amd you have a one-two hit that really goes for the jaw here. I can't say if there will be more, but Hanwha is absolutely looking to get more similar agreements out the gate, snd they aint the only one on Team Korea trying this strategy…
I digress. I can't go blabbing. Then people will beat me up or stuff. Either way this is a relatively simple and uneventful in the agreement itself, but breaking the barrier on government entities as partners, and what follows, is definetly something that shifts the stakes and conversation.