Canada Prime Minister Mark Carney, right, waves as he and Diana Fox Carney board a government plane in Ottawa, Monday. AP-YonhapHanwha Ocean has lost its bid to supply Canada’s next-generation submarine fleet, after Ottawa selected Germany’s TKMS as the preferred bidder for the megaproject, Canada’s Prime Minister Mark Carney said Monday.The decision marks a major setback for the Korean shipbuilder in Canada's 60 trillion won ($39.2 billion) project to replace the Royal Canadian Navy's aging fleet of four Victoria-class submarines with 12 new 3,000-ton diesel-electric vessels. The program also includes long-term maintenance, repair and overhaul (MRO) services.Carney formally announced the selection of TKMS before his departure for the North Atlantic Treaty Organization (NATO) leaders' summit in Turkey.Hanwha Ocean had pitched a variant of its 3,000-ton KSS-III Batch-II submarine. The vessel, developed for the Korean Navy, features fuel-cell propulsion and lithium-ion batteries, allowing it to remain submerged for over three weeks.However, TKMS — leveraging a joint bid backed by Norway — secured the advantage by promising a larger economic package and emphasizing its deep integration as a NATO ally supplying European navies.