South Korea Proposes Hydrogen Truck Technology Transfer to Canada Linked to Submarine Bid

The South Korean government has proposed a hydrogen truck package project to the Canadian government, investing 3.4 trillion won (approximately 3.1 billion Canadian dollars) in connection with the bid for next-generation submarines.

According to the Blue House on June 5, Chief of Staff Kang Hoon-sik disclosed the plan, named 'Project Beaver,' during an interview with Canadian CTV on June 3 (local time).

Currently, Hanwha Ocean is in final competition with Germany's ThyssenKrupp Marine Systems (TKMS) for the Canadian next-generation submarine project, which is valued at up to 60 trillion won.

CTV reported that while some details of this project were included in Hanwha Ocean's bidding documents, specifics had not been previously disclosed.

Project Beaver aims to transfer Hyundai Motor's hydrogen vehicle technology to Canada. Hyundai Motor Group, which has a defense sector, is collaborating with Hanwha Ocean on this bid.

According to the project plan, the first phase will begin in 2030, focusing on constructing a liquefied hydrogen plant in British Columbia.

Thirty-two hydrogen vehicle charging stations will be established in British Columbia and Alberta, with a manufacturing plant for hydrogen vehicles planned in Ontario. An additional 160 charging stations are expected to be installed after 2035.

In the interview, Kang explained that through this project, they aim to create a South Korean brand that utilizes Canadian raw materials and components in the manufacturing process.

He emphasized that securing the submarine contract would enable Hyundai Motor to assist in building Canada's hydrogen ecosystem.

Kang also projected that Project Beaver would foster the hydrogen truck industry, creating 9,000 jobs.

He attributed the decision to propose a hydrogen truck project, rather than consumer electric vehicles, to pressure from the United States and China's entry into the Canadian electric vehicle market.

Kang cited the example of European automaker Stellantis, stating, "The U.S. suggested it would be more advantageous for Stellantis to come to the U.S.," adding that South Korean companies are facing similar pressures. Stellantis announced last October that it would move production of its Jeep models from Ontario, Canada, to Illinois, U.S.

Kang noted that when Canadian Prime Minister Mark Carney visited China, he promised a certain volume of electric vehicle imports from China, stating, "It is difficult for South Korea to compete with China, which leads in the electric vehicle sector."

Meanwhile, Kang visited Canada as a special envoy for strategic economic cooperation for President Lee Jae-myung and returned on June 4.