Hanwha Group has taken a significant step in the energy sector with a substantial investment in the U.S.-based LNG company, NextDecade. On June 14, Hanwha Aerospace announced the acquisition of 17,536,368 shares of NextDecade for 180.3 billion won, securing a 6.83% stake in the company. This move is part of Hanwha’s broader strategy to strengthen its position in the LNG market, crucial for the global shift towards cleaner energy sources.
Alongside Hanwha Aerospace’s investment, Hanwha Ocean is participating in a 360 billion won rights offering by Hanwha Ocean USA Holdings. The raised funds will go to Hanwha Ocean USA International LLC, a subsidiary of USA Holdings. This follows a similar investment in March, where Hanwha Ocean injected 180 billion won into the subsidiary.
Hanwha Ocean USA International LLC plans to use the approximately 540 billion won raised since March to acquire shares in NextDecade at the same level as Hanwha Aerospace. Collectively, Hanwha Group will invest a total of 360 billion won to secure a 13.66% stake in NextDecade. This builds on a previous investment by Hanwha Impact, which invested around 80 billion won in NextDecade and obtained a seat on its board of directors. Together, Hanwha Impact, Hanwha Aerospace, and Hanwha Ocean will hold over a 15% stake in NextDecade.
A representative from Hanwha highlighted the strategic importance of this investment, stating, “LNG is expected to play an increasingly important role as an intermediate fuel for decarbonization. We aim to create business expansion opportunities for Hanwha Ocean through NextDecade.”
As Hanwha Group continues to invest in NextDecade, the combined stake of over 15% held by its subsidiaries will likely grant them significant influence over the company’s future direction. This move underscores Hanwha’s commitment to contributing to the global energy transition and expanding its business opportunities within the LNG sector.
