South Korea Proposes Hydrogen Investment to Win Canadian Submarine Contract

South Korea has proposed a strategic investment package called Project Beaver to secure the Canadian Patrol Submarine Project, a contract for up to 12 diesel-electric submarines valued at over $100 billion over the vessels' lifespan. Led by Hyundai Motor Group and Hanwha, the proposal offers between $2.2 billion and $3.1 billion to establish a hydrogen long-haul freight truck industry in Canada by 2030.

The investment includes building a hydrogen liquefaction plant in British Columbia, a manufacturing facility likely in Ontario, and nearly 200 charging stations across British Columbia and Alberta. The plan aims to create up to 15,000 jobs and diversify Canada's automotive sector. This economic package is contingent on South Korea winning the defense contract.

To support the bid, the Republic of Korea Navy deployed the ROKS Dosan Ahn Chang-ho on a trans-Pacific voyage to Victoria, British Columbia, arriving May 23. The KSS-III class submarine served as an operational showcase for Royal Canadian Navy personnel. Hanwha Ocean has proposed a delivery schedule with the first hull arriving by 2032 and four boats by 2035. The Canadian government is expected to announce the contract winner before the end of June.