Canadian Pacific Kansas City and Teck Resources will conduct a pilot program starting in early 2024 in which coal used in steel production will be transported from Teck’s mines in southeastern British Columbia to western ports using CPKC’s hydrogen locomotives.
The companies also said they have entered into a long-term rail service agreement that will run until the end of 2026. The agreement builds on existing services, according to a Thursday release.
“CPKC is proud to work with organizations such as Teck that share our passion to be leaders for a sustainable future as we look to take the next step in the development of our innovative hydrogen locomotive program,” CPKC (NYSE: CP) President and CEO Keith Creel said in the release.
Both companies said the pilot will help reduce greenhouse gas emissions in the supply chain.
“This collaboration with CPKC to pioneer hydrogen locomotive technology supports our climate action strategy and our objective of achieving net zero by 2050,” Teck CEO Jonathan Price said. “The agreement complements our Neptune Terminals investment and other secured West Coast port capacity to support the efficient movement of our high-quality Canadian steelmaking coal to our global customers.”
In March, Canadian media outlet CBC reported that Alberta manufacturer Bilton Weldon and Manufacturing has been working to convert three diesel locomotives into hydrogen-powered locomotives, with the expectation that these locomotives could enter into service at the end of this year.
CP said in November 2021 that it had received a $15 million grant from Alberta to increase the number of hydrogen locomotive conversions and add hydrogen production and fueling facilities.
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