Advancing Canadian Power and Propulsion Technology into Global Submarine Supply Chain
- Tri-party Teaming Agreement formalized in Ottawa positions Atlantic Canadian company within Hanwha Ocean’s Canadian Patrol Submarine Project (CPSP) industrial framework
- Hanwha Ocean and KTE tour AKA’s advanced manufacturing and testing facilities in PEI; AKA delegation to visit KTE and Hanwha Ocean shipyard in South Korea to advance technology collaboration
- Partnership expected to create approximately 200 high-skilled jobs in Atlantic Canada, delivering on Canada’s Defence Industrial Strategy objectives
- Collaboration to advance research and development of marine power and propulsion technologies through AKA’s advanced testing labs
March 5, 2026
MONTAGUE, PEI – AKA Energy Systems, an Atlantic Canadian leader in advanced marine power and propulsion solutions, has signed a tri-party Teaming Agreement with Hanwha Ocean Co., Ltd. and KTE Co., Ltd. of South Korea in support of Canada’s Canadian Patrol Submarine Project (CPSP). The agreement was formalized during Hanwha Ocean’s CPSP Partners’ Day at the National Arts Centre in Ottawa on March 5th, 2026. It establishes an integrated collabo
ration framework for power distribution, electrical and control systems, and propulsion technologies – positioning Canadian innovation at the centre of a global submarine supply chain.
The Teaming Agreement directly supports Canada’s Industrial and Technological Benefits (ITB) objectives by integrating a Canadian small and medium-sized enterprise into an international naval program, creating structured pathways for domestic technology development, high-value manufacturing, and the export of Canadian-made systems to global shipbuilding projects.
International Technology Exchange
Prior to the signing in Ottawa, senior representatives from Hanwha Ocean and KTE visited AKA Energy Systems’ headquarters and advanced manufacturing facilities in Montague, Prince Edward Island. The delegation toured AKA’s 100,000-square-foot vertically integrated manufacturing campus, including its electrical assembly facility, mechanical fabrication shop, and full-load testing and prototyping lab. These capabilities underpin AKA’s reputation as a world leader in high-reliability hybrid power and microgrid technologies.
Next steps include AKA Energy Systems’ representatives traveling to South Korea to visit KTE’s facilities and Hanwha Ocean’s shipyard to advance discussions on technology collaboration between the three parties. The South Korea visit will focus on:
- High-reliability technology for marine power and propulsion systems
- Export of Canadian technology to Hanwha Ocean’s global shipbuilding projects, integrating AKA’s advanced power and propulsion systems into Hanwha’s naval and commercial vessel programs
- Joint development of next-generation electrical and control system architectures for submarine and naval platforms
The reciprocal facility visits represent a deepening of the industrial relationship between the three partners, moving beyond the framework agreement toward concrete technical cooperation and technology integration.
Delivering on Canada’s Defence Industrial Strategy
The AKA–Hanwha Ocean–KTE partnership is a model example of the outcomes envisioned by Canada’s Defence Industrial Strategy, launched by Prime Minister Mark Carney on February 17, 2026. The Strategy’s “Build–Partner–Buy” procurement framework prioritizes Canadian suppliers, strengthens domestic defence manufacturing capability, and positions Canadian SMEs within international supply chains – precisely what this Teaming Agreement delivers.
The partnership directly advances several core objectives of the Defence Industrial Strategy:
- Integrating a Canadian SME into a global defence supply chain, supporting the Strategy’s goal of raising the share of defence acquisitions awarded to Canadian firms to 70 per cent within a decade
- Strengthening sovereign Canadian capability in critical marine power and propulsion systems – technologies essential to submarine performance and national defence readiness
- Creating export pathways for Canadian-made defence technology to allied shipbuilding programs, supporting the Strategy’s target of increasing defence exports by 50 per cent
- Driving innovation, investment, and high-paying careers in Atlantic Canada, aligned with the Strategy’s commitment to geographic balance and regional economic development through defence procurement
The CPSP procurement process itself demonstrates how Canada’s defence acquisition framework can successfully connect domestic industry with international partners, generating meaningful industrial benefits for Canadian companies and communities well ahead of a final contract award.
Economic Impact and Job Creation
AKA Energy Systems’ participation in the CPSP program is expected to create approximately 200 high-skilled jobs in Atlantic Canada, spanning advanced engineering, manufacturing, systems integration, testing, and life-cycle support. These positions represent high-value careers in a knowledge-intensive sector, strengthening Atlantic Canada’s position as a hub for marine technology innovation and advanced manufacturing.
The job creation impact extends beyond direct employment. As a vertically integrated company – delivering engineering, manufacturing, testing, installation, and through-life support from its Atlantic Canadian facilities – AKA’s growth generates significant downstream economic activity across the region’s supply chain and service sectors.
AKA Energy Systems is also looking forward to collaborating with Hanwha Ocean on furthering research and development of marine power and propulsion technologies in AKA’s advanced testing labs. AKA’s full-load testing facility and living lab environment provide the infrastructure for prototyping, validating, and de-risking advanced power system architectures under real-world operating conditions – a capability that is critical to the development of next-generation submarine power systems.
Quotes
“This Teaming Agreement is a significant milestone for AKA Energy Systems and for Atlantic Canada. By partnering with Hanwha Ocean and KTE, we are bringing Canadian power and control system expertise into an international naval program, creating high-value engineering jobs, and building export pathways for Canadian technology into global shipbuilding projects. This is exactly what Canada’s Defence Industrial Strategy calls for – domestic innovation, integrated into international supply chains, delivering real economic impact for Canadian communities.”
Jason Aspin, CEO, AKA Energy Systems
“This partnership with AKA Energy Systems demonstrates our commitment to strengthening Canada’s defence ecosystem and building a future-ready Canadian defence workforce. We are building lasting industrial partnerships that integrate Canadian SMEs into a global supply chain and support continued innovation, employment and regional economic development in Atlantic Canada.”
Charlie SC Eoh, President, Hanwha Ocean
About AKA Energy Systems
AKA Energy Systems (Aspin Kemp & Associates Inc.) is an Atlantic Canadian energy systems provider that designs, manufactures, and supports advanced power and propulsion solutions for marine, offshore, and land-based applications worldwide. Established in 1996 and headquartered in Montague, Prince Edward Island, AKA is recognized as a world leader in high-reliability hybrid and microgrid technologies. The company delivers fully integrated solutions – from engineering and systems integration through manufacturing, testing, installation, and life-cycle support – serving commercial, industrial, and defence customers globally. AKA maintains a 100,000-square-foot vertically integrated manufacturing campus in Atlantic Canada, with offices in Europe, the United States, and Singapore, and a worldwide field services team.
About Hanwha Ocean
Hanwha Ocean is a leading global shipbuilder with more than four decades of experience delivering complex naval and commercial shipbuilding programs. Supported by its large-scale, integrated shipyard in Geoje, South Korea that spans 5 square kilometres and has more than 31,000 employees, the company combines proven industrial capacity with operational expertise 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. The company has developed deep expertise in the design, construction, and in-service support of submarines and surface combatants for the Republic of Korea Navy, producing approximately 45 commercial and naval vessels annually.
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AKA Energy Systems, Hanwha Ocean and KTE Sign Teaming Agreement on March 5, 2026 in Ottawa, ON