South Korea proposes $3.4 billion hydrogen truck project to Canada linked to submarine deal

South Korea has proposed a hydrogen truck package project worth 3.1 billion Canadian dollars (approximately 3.4 trillion won) to the Canadian government, linked to securing a next-generation submarine contract, Canadian broadcaster CTV News reported on the 3rd (local time).

Kang Hoon-sik, Secretary General, revealed the specific details of the plan, named 'Project Beaver,' in an interview with CTV.

Currently, Hanwha Ocean is in the final competition with Germany's Thyssenkrupp Marine Systems (TKMS) for the Canadian next-generation submarine project, estimated to be worth up to 60 trillion won.

CTV reported that while the details of this project were partially included in Hanwha Ocean's bid documents, the specifics had not been disclosed until now.

Project Beaver is based on transplanting hydrogen vehicle technology developed by Hyundai Motor to Canada. Hyundai Motor Group, which has a defense sector, is collaborating with Hanwha Ocean in this bid.

According to the project plan, Phase 1 will commence in 2030, with the main focus on building a liquefied hydrogen plant in British Columbia.

Thirty-two hydrogen refueling stations will be installed in British Columbia and Alberta, and a hydrogen vehicle manufacturing plant will be built in Ontario. After 2035, more than 160 additional hydrogen refueling stations are expected to be installed.

Kang explained the project through the interview, stating, 'It will be a Korean brand that uses Canadian raw materials and uses Canadian parts in the manufacturing process.'

He emphasized, 'Once we win the submarine contract bid, Hyundai Motor will help build Canada's hydrogen ecosystem.'

He also mentioned that Project Beaver would foster the hydrogen truck industry and create 9,000 jobs.

Kang cited US pressure and China's entry into the Canadian electric vehicle market as reasons why South Korea proposed a hydrogen truck project instead of a consumer electric vehicle project.

Kang cited the example of European automaker Stellantis, saying, 'The US told (Stellantis) that coming to the US would be more advantageous. Korean companies are facing similar pressure.' Stellantis announced in October last year that it would move Jeep model production from Ontario, Canada, to Illinois, USA.

He added, 'When Prime Minister Mark Carney visited China, Prime Minister Carney promised to import a certain volume of Chinese-made electric vehicles to China,' and 'It is difficult for South Korea and China, which are leading in the electric vehicle sector, to compete.'