Hanwha Ocean Secures $1.8 Billion Offshore Wind Contract
Hanwha Ocean recently secured a major $1.8 billion engineering, procurement and construction (EPC) contract worth of South Korea's 390-MW Shinan Ui project as an offshore wind EPC contract, marking their expansion into renewable energy infrastructure. Working alongside Hyundai Engineering & Construction on this contract represents an important turning point for Hanwha Ocean as they diversify beyond traditional maritime construction to develop renewable energy infrastructure projects such as Shinan Ui. Korea Midland Power is participating as equity partner as is SK Eternix in this joint development of this development project as equity partners alongside Korea Midland Power Hyundai E&C & SK Eternix as equity partners in this development project.
Shinan Ui Project Advances After Delays Environmental reviews, fisheries consultations and financing hurdles have delayed this project for years, leading to environmental reviews, fisheries consultations and financing hurdles have advanced the Shinan Ui offshore wind facility would more than double South Korea's current offshore wind capacity to approximately 740MW from 350MW currently. Korea Development Bank and KB Kookmin Bank were appointed lead arrangers for project financing with Future Energy Fund investing KRW 544 Billion (US$371 Million) through equity and subordinated loans respectively.
Hanwha Ocean plans to construct South Korea's inaugural wind turbine installation vessel capable of handling 15 megawatt-class turbines and has selected domestic suppliers for key components including submarine cables and substructures. The project reflects South Korea's wider effort to increase offshore wind capacity to 25 gigawatts by 2035 with regulatory reforms being introduced by government that reduce permitting times from approximately 71 months down to 31 months.
U.S. Navy Shipbuilding Expansion and Golden Fleet Initiative.
Hanwha Ocean saw its stock increase approximately 12 percent following announcements regarding expanded U.S. Navy shipbuilding cooperation. Under President Trump's strategic bilateral shipbuilding partnership, the company is exploring multiple opportunities in this regard - including manufacturing hull blocks and modular components for US Navy vessels through Make America Shipbuilding Great Again (Masga), an investment program estimated to cost $150 billion over time.
Hanwha Philly Shipyard was established in 2024 to meet U.S. government requirements for working on American warships, which involves rigorous approval processes due to classified technology handling. Since that year, they have actively sought the appropriate licenses in order to build warships - these requirements being in the form of licenses to work on them - undergoing stringent approval processes due to classified tech handling. Since its acquisition by Hanwha in 2024 they have seen direct employment increase by 30 percent with 126 new workers being hired since 2025 while investing phased facility investments that aim at replacing 23 percent of core equipment with investments over time.
Legal clearances for warship construction should increase through early 2026 in line with President Trump's Golden Fleet timeline, though infrastructure constraints and legal constraints could hinder Hanwha's expansion into nuclear-powered submarine construction despite Trump administration support for their Philadelphia facility's involvement in Virginia-class program.
Strategic Energy and Defense Positioning
Hanwha Ocean's dual focus on renewable energy infrastructure and U.S. defense shipbuilding reflect its strategic positioning within South Korea's energy transition and bilateral U.S.-Korea defense industrial cooperation framework. Their renewable energy expansion aligns with South Korean government commitments to nearly double financial support for renewable projects; their 2026 budget specifically allocates KRW 648 billion (US$442 million).
Hanwha Ocean's simultaneous pursuit of offshore wind and naval shipbuilding contracts illustrates their strategy to diversify revenue streams while expanding their maritime engineering expertise across different sectors. If successful in both initiatives, it would cement their place as an integral player in South Korean energy security as well as U.S.-Korea defense industrial partnership during a time when naval capabilities and renewable energy deployment remain top geopolitical priorities.