Project Beaver: Korea's $2.23B offer to build hydrogen trucks in Canada to give submarine bid more bite
Published: 04 Jun. 2026, 18:17
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- KIM MIN-YOUNG
- [email protected]
![Crew members aboard the Dosan Ahn Chang-ho submarine perform a naval salute as the submarine arrives at Canadian Forces Base Esquimalt in Victoria, British Columbia, Canada, on May 23 for a Korea-Canada joint naval exercise. [REPUBLIC OF KOREA NAVY]](https://koreajoongangdaily.joins.com/data/photo/2026/06/04/5f3cf7f6-4158-4be4-9750-6a9463f1d241.jpg)
Crew members aboard the Dosan Ahn Chang-ho submarine perform a naval salute as the submarine arrives at Canadian Forces Base Esquimalt in Victoria, British Columbia, Canada, on May 23 for a Korea-Canada joint naval exercise. [REPUBLIC OF KOREA NAVY]
Korea has reportedly added an unexpected sweetener to its bid for Canada's multibillion-dollar submarine contract: a 3.1 billion Canadian dollars ($2.23 billion) plan to build hydrogen-powered trucks on Canadian soil, as well as a plan to triple crude oil imports from the Great White North.
The proposal, code-named Project Beaver, is an industrial package to manufacture next-generation hydrogen freight trucks in Canada and build out a national hydrogen refueling network, offered as an industrial inducement tied to awarding the submarine work to Hanwha Ocean.
The plan was disclosed by Kang Hoon-sik, chief of staff to President Lee Jae Myung and the president's special envoy for the strategic partnership, during a visit to auto-parts maker Martinrea International in Woodbridge, Ontario, on Monday, according to an exclusive interview with CTV News.
The motor company was hesitant to confirm Kang's words. “While we are exploring potential hydrogen business opportunities in Canada, no final decisions have been made,” said Hyundai Motor. “Details regarding the project, including its specific scope, scale and location, remain under review and consultation with public and private stakeholders.”
Project Beaver would transplant Hyundai Motor's hydrogen technology to Canada, with long-haul hydrogen truck production beginning in 2030 and dozens of refueling stations built across the country to seed an independent clean-mobility ecosystem, creating an estimated 9,000 jobs.
"This will be a Korean brand with Canadian parts in the manufacturing operations, as well as raw materials from Canada," said Kang.
Under the detailed plan, a hydrogen liquefaction plant would be built in British Columbia in the first phase, starting in 2030, alongside 32 refueling stations in British Columbia and Alberta.
![Presidential chief of staff Kang Hoon-sik, left, speaks to employees as he visits Martinrea International, in Woodbridge, Ontario, Canada, on Monday, June 1. [AP/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/06/04/c41bc768-2199-49ff-9f27-b75b218e7a04.jpg)
Presidential chief of staff Kang Hoon-sik, left, speaks to employees as he visits Martinrea International, in Woodbridge, Ontario, Canada, on Monday, June 1. [AP/YONHAP]
The truck manufacturing plant itself would most likely be built in Ontario, the heart of Canada's auto industry. After 2035, a further 160 refueling stations would be added nationwide, with cooperation potentially extending to the local production and export of hydrogen trains that Korea is currently testing.
The choice of hydrogen freight trucks over consumer electric vehicles is itself strategic. Kang cited intensifying price competition with China in the EV market after Prime Minister Mark Carney's pledge on Chinese EV import quotas during a visit to China, as well as North American trade pressures exemplified by Stellantis moving Jeep production from Brampton, Ontario, to Illinois.
Betting on hydrogen in the large commercial vehicle segment, a niche and a future growth driver, was judged more pragmatic for both countries.
Project Beaver is one piece of a far larger industrial package. Korea is simultaneously coordinating some 75 memorandums of understanding, including a more than fivefold expansion of annual liquefied natural gas imports from Canada, 9 billion Canadian dollars in critical mineral purchases, and an armored vehicle production agreement between Hanwha and Canada's Automotive Parts Manufacturers' Association.
The stakes are enormous. Canada's program to acquire up to 12 diesel-electric submarines is expected to cost more than 100 billion Canadian dollars over the full life cycle, a megaproject that would reshape the country's industrial base for decades.
![Jeong Sung-kyun, left, vice president of naval ship overseas business at Hanwha Ocean, introduces a model of KSS-III submarine Victor Fedeli, Ontario's Minister of Economic Development, at the company's booth during CANSEC 2026 in Ottawa, Canada. [HANWHA OCEAN]](https://koreajoongangdaily.joins.com/data/photo/2026/06/04/a983351e-ef06-4da3-8d28-355691c6e7e0.jpg)
Jeong Sung-kyun, left, vice president of naval ship overseas business at Hanwha Ocean, introduces a model of KSS-III submarine Victor Fedeli, Ontario's Minister of Economic Development, at the company's booth during CANSEC 2026 in Ottawa, Canada. [HANWHA OCEAN]
Korea has also been pairing the submarine bid with a broader energy and resources alliance. Korea's Ministry of Trade, Industry and Energy and Canada's Department of Natural Resources co-hosted a supply chain forum in Ottawa on Tuesday, during which Kang met with Energy and Natural Resources Minister Tim Hodgson.
Korea plans to roughly triple its Canadian crude oil imports this year, a move that would make it Canada's third-largest crude export destination after the United States and China, and to expand cooperation on liquefied natural gas and critical minerals.
A Hanwha Ocean bid win would generate 93.6 billion Canadian dollars in added value for the Canadian economy between 2026 and 2044 and create roughly 430,000 jobs, according to an independent analysis by accounting firm KPMG.
The Korean offer aligns with the industrial and technological benefits framework championed by Industry Minister Mélanie Joly, which seeks to provide domestic defense firms with access to global supply chains.
Korea's competitor is not standing still. Germany's TKMS, fronted by Defense Minister Boris Pistorius, is countering with claims of an 86 billion Canadian dollar economic impact and more than 650,000 jobs.
With Carney expected to announce the winning bidder by the end of June, both sides are making their final pitches, and the Canadian government faces the task of rigorously verifying the employment multipliers and the enforceability of the investment commitments each side has put forward.
BY KIM MIN-YOUNG [[email protected]]
with the Korea JoongAng Daily
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