Calgary-based Azure Sustainable Fuels has signed a memorandum of understanding with Hanwha Ocean to explore investment and growth opportunities in Canada’s sustainable aviation fuel sector.
The agreement could support Azure’s plans to commercialize and scale renewable fuel production facilities that use agricultural feedstocks to produce sustainable aviation fuel, or SAF, for the aviation industry.
Hanwha Ocean and Azure announced the MOU today, after originally signing it on April 22. The agreement was formally celebrated at Hanwha Ocean’s BC Innovation Day in Victoria on May 25, an event that brought together Canadian and Korean government officials, industry leaders, academic institutions, and research organizations.
Under the MOU, Hanwha Ocean and Azure will explore strategic investment collaboration aimed at supporting Azure’s growth, commercialization activities, and long-term market expansion. The companies said the collaboration is intended to help scale Canadian technologies and businesses through potential future investment activities.
The agreement establishes a framework through which Hanwha Ocean’s strategic investment, channelled through a dedicated venture fund, may support Azure’s growth, accelerate commercialization, and expand its global market reach. Any future investment remains subject to further evaluation, due diligence, internal approvals, and definitive agreements.
“Canada has strong innovation capabilities and significant long-term potential in sustainable energy and advanced industrial technologies,” said Steve SK Jeong, Senior Executive Vice President and Head of Naval Ship International Business at Hanwha Ocean. “Through this MOU with Azure, we look forward to exploring opportunities that can support the commercialization and global growth of Canadian sustainable aviation fuel technologies while strengthening industrial cooperation between Korea and Canada.”
Azure President Stu Roberts said the partnership could help accelerate SAF development in Canada while strengthening ties between the two countries.
“Azure is very excited to partner with Hanwha Ocean to advance SAF in Canada, as well as the broader partnership between the Republic of Korea and Canada,” said Roberts. “This MOU creates an opportunity to explore how strategic investment and industrial cooperation between the Republic of Korea and Canada can help accelerate commercialization, scale our capabilities, and expand our global reach.”
Azure is developing large-scale renewable fuel production facilities designed to produce sustainable aviation fuel, reduce dependence on jet fuel imports, support Canada’s agricultural sector, and lower emissions in aviation, a hard-to-abate transportation sector.
The company says it is using a templated, multi-site approach and commercially proven HEFA technology to deliver renewable fuels at scale. Azure is targeting a final investment decision in 2027 and aims to begin operations by 2030.
Hanwha Ocean is a major global shipbuilder based in South Korea. The company has more than four decades of experience delivering naval and commercial shipbuilding programs, operates a five-square-kilometre integrated shipyard in Geoje, and has delivered more than 1,400 vessels worldwide since its establishment in 1973.
For Azure, the MOU adds another international industrial partner as the Calgary company works to position Canada as a player in the emerging global SAF market.
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