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Korea bolsters Canadian submarine bid with hydrogen vehicle project
Kang Hoon-sik, back row fifth from left, chief of staff to Korean President Lee Jae Myung, joins a memorandum of understanding signing between Hanwha Ocean, Canada's Automotive Parts Manufacturers' Association and Algoma Steel, at Martinrea International's manufacturing plant in Woodbridge, Ontario, Monday. Photo from Kang's Facebook
By Ko Dong-hwan
Hyundai Motor to help build Canada's hydrogen truck industry under Project Beaver
Project Beaver, a proposal involving manufacturing and user infrastructure for long-haul hydrogen trucks in Canada, has emerged as Korea's secret weapon to woo the Canadian government ahead of its announcement of a winning bidder for its submarine contract later this month.
The project will be the latest addition to a bundle of economic benefits for Canada as part of the bid proposed by Hanwha Ocean, HD Hyundai Heavy Industries and the Korean government. If the Canadian government approves the project, worth roughly 60 trillion won ($43.5 billion), the North American country will be able to build a nationwide hydrogen truck ecosystem which will begin building in as early as 2030.
During his visit to Canada last week to facilitate bilateral economic ties, Korea's presidential chief of staff Kang Hoon-sik proposed the project to the Canadian government. He mentioned the project in partnership with Hyundai Motor Group during an interview on Wednesday with CTV, a local broadcaster in Canada.
The project, named after the rodent that inhabits Canadian waterways, involves an investment of more than $2.23 billion into infrastructure, including a hydrogen liquefaction plant and 32 hydrogen fueling stations in British Columbia starting in 2030. An additional 160 fueling spots will be set up across the nation by 2035. A hydrogen truck manufacturing plant is expected to be built in Ontario.
As Kang told CTV, “This will be a Korean brand where there will be Canadian parts in the manufacturing operations with raw materials from Canada. Once we win the bid for the submarine contract, Hyundai Motor is going to help Canada build its ecosystem on hydrogen.”
Hyundai Motor's 2027 Xcient Fuel Cell electric truck / Courtesy of Hyundai Motor
Flavio Volpe, president of the Auto Parts Manufacturers Association in Canada, said in a separate CTV report that Project Beaver will "generate 15,000 direct jobs" in Canada. Canadian Hydrogen Association Vice President of Government Relations and Public Affairs Maike Althaus also told the broadcaster that the project will be a “game changer for the low-carbon hydrogen sector, potentially unlocking billions of investment and thousands of jobs.”
Hyundai Motor Group is now part of Korea's joint bidding for the Canadian Patrol Submarine Project. The Defense Acquisition Program Administration is representing the Korean government, while major defense company Hanwha Ocean is spearheading the bid with its submarine construction track record. The world's largest shipbuilder, HD Hyundai Heavy Industries, is backing the project as well.
Korea is now competing against Germany’s TKMS. The shipbuilder selected for the project will build a dozen 3,000-ton submarines to replace Canada’s Victoria-class diesel-electric powered submarines, which are set to be decommissioned after 2030.
Project Beaver is the Korean government’s answer to Canada’s demand for Hyundai Motor Group to build a complete automobile manufacturing plant in Canada — a condition for selecting Korea for the submarine project. The Korean consortium, instead of limiting its Canadian investment to the automobile sector, has chosen to evolve Canada’s hydrogen sector by introducing a new ecosystem connecting manufacturing, fueling and mobility using carbon-free energy.
The project runs parallel to the Canadian government’s desire to diversify and build a more resilient auto industry. After U.S. President Donald Trump launched a global trade war using tariff regulations last year, Canada now produces 30 percent fewer cars, according to CTV. Kang, during his latest visit to Canada, attended energy forums in Toronto and Ottawa and met Canadian Minister of Energy and Natural Resources Tim Hodgson on Tuesday.