Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) and CSX
Corporation (NASDAQ: CSX) (CSX) today announced their intent to
enter into a joint venture for the building and deployment of
hydrogen locomotive conversion kits for diesel electric
locomotives.
As an initial step in the collaboration, CSX plans to convert
one of its diesel locomotives using a hydrogen conversion kit
developed by CPKC. The conversion work will be done at CSX’s
Huntington, West Virginia locomotive shop.
“This innovative collaboration expands our hydrogen locomotive
program beyond a single railroad and represents an exciting next
step in proving the long-term viability of hydrogen as a solution
to emissions reduction for our industry,” said Keith Creel, CPKC
president and chief executive officer. “Our hydrogen locomotive
went from concept to reality in 24 months with the first zero
emissions hydrogen locomotive having already pulled freight in
revenue service. We look forward to this collaboration as we work
to create a lower carbon future.”
“CSX looks forward to working as a partner with CPKC in the
development of the hydrogen locomotive program as it demonstrates
our commitment to implementing alternative fuel solutions that
could further enhance our emissions performance and offer our
customers an even more environmentally-friendly transportation
solution,” said Joe Hinrichs, CSX president and chief executive
officer. “This exciting initiative will greatly benefit from the
expertise of CSX’s advanced, large-scale facilities, where the
locomotives will be built.”
Nearly the entire freight locomotive fleet of all railway
operators in North America consists of diesel-powered units,
representing the industry's most significant source of greenhouse
gas emissions. Rail has an important role to play in a lower carbon
economy and the industry needs a long-term, effective alternative
fuel solution.
In December 2020, Canadian Pacific (CP) announced plans to
develop North America’s first line-haul hydrogen-powered locomotive
by retrofitting a diesel freight locomotive with hydrogen fuel
cells and battery technology to drive the locomotive's electric
traction motors. The prototype, designed and built by in-house
CP engineers, made its first movement under its own power in late
2021. By the end of 2022, the locomotive had made its first revenue
moves and now has accumulated more than 1,000 miles of testing in
revenue service.
CPKC has deployed a second hydrogen locomotive for testing in
terminal operations, a program expansion supported by funding
awarded by Emissions Reduction Alberta and the Government of Canada
Low Carbon Economy Fund. The second hydrogen locomotive is expected
to enter service later in 2023.
Forward looking information This news release
includes certain forward-looking statements and forward looking
information (collectively, “FLI”) within the meaning of applicable
securities laws in both the U.S. and Canada. Any statements about
the parties' expectations, beliefs, plans, goals, targets,
predictions, forecasts, objectives, assumptions, information and
statements about possible future events, conditions and results of
operations or performance are not historical facts and may be
forward-looking. FLI in this news release includes, but is not
limited to, plans or objectives of management for future
operations; information regarding sustainability-related actions
the parties’ plan to take in the future, including the parties’
commitments and targets relating to GHG emissions reduction; plans
and expectations regarding CPKC's integration of KCS; and the
parties’ ability to work with governments and third parties in our
efforts to mitigate the impacts of climate change; and assumptions
underlying or relating to any of the foregoing. FLI is often, but
not always, made through the use of words or phrases such as
"anticipates", "aims", "believes", "can", "could", "may",
"predicts", "potential", "should", "will", "estimates", "plans",
"projects", "continuing", "ongoing", "expects", "intends",
“outlook”, “guidance” and similar words or phrases suggesting
future outcomes or statements regarding an outlook.
This news release contains forward-looking information relating,
but not limited, to, the planned collaboration between CPKC and CSX
to develop additional hydrogen locomotives, the anticipated impacts
of the collaboration on levels of carbon emissions, the anticipated
date the second hydrogen locomotive is expected to enter into
service, and other related matters associated with providing an
effective solution to diesel locomotives.
FLI is based on current assumptions about the parties’
businesses and their strategies as well as economic, political,
regulatory, market and environmental conditions affecting them.
Although the parties’ believe the assumptions reflected in the
forward-looking information presented in this report are reasonable
as of the date hereof, there can be no assurance that they may
prove to be correct. Readers should not put undue reliance on
forward-looking information, as it is not a guarantee of future
performance. Forward-looking information involves many inherent
risks and uncertainties that could cause actual results to differ
materially from the forward-looking information, including but not
limited to the factors that are detailed from time to time in
reports we file with the securities regulators in Canada and with
the U.S. Securities and Exchange Commission (SEC) in the United
States. Reference should be made to "Item 1A - Risk Factors" and
"Item 7 - Management's Discussion and Analysis of Financial
Condition and Results of Operations - Forward-Looking Statements"
in CPKC's annual and interim reports on Form 10-K and 10-Q.
In addition, the parties’ environmental, social, governance and
sustainability priorities, policies, practices, programs, goals and
objectives (including commitments and targets relating to GHG
emissions reduction) remain under development as we continue to
refine our analysis of and response to potential future climate and
other risks and opportunities, and as the science, data and
methodology underlying our analysis and strategy continue to evolve
over time.
Further, as CPKC continues to integrate the operations of KCS
into CPKC, CPKC is conducting additional data-gathering and intend
to further assess the climate and other environmental, social,
governance and sustainability strategies and initiatives for the
combined company, and may make changes to our existing strategies
and initiatives as a result.
For these reasons, in future disclosures, CPKC may include
information that differs from those contained in this report.
Unless indicated otherwise or the context otherwise requires,
forward-looking information in this report speaks only as of the
date hereof. Except as required by law, the parties undertake no
obligation to update publicly or otherwise revise any
forward-looking information, or the foregoing assumptions and risks
affecting such forward-looking information, whether as a result of
new information, future events or otherwise.
About CPKCWith its global headquarters in
Calgary, Alta., Canada, CPKC is the first and only single-line
transnational railway linking Canada, the United States and México,
with unrivaled access to major ports from Vancouver to Atlantic
Canada to the Gulf of México to Lázaro Cárdenas, México. Stretching
approximately 20,000 route miles and employing 20,000 railroaders,
CPKC provides North American customers unparalleled rail service
and network reach to key markets across the continent. CPKC is
growing with its customers, offering a suite of freight
transportation services, logistics solutions and supply chain
expertise. Visit cpkcr.com to learn more about the rail advantages
of CPKC. CP-IR
About CSXCSX, based in Jacksonville, Florida,
is a premier transportation company. It provides rail, intermodal
and rail-to-truck transload services and solutions to customers
across a broad array of markets, including energy, industrial,
construction, agricultural and consumer products. For nearly 200
years, CSX has played a critical role in the nation’s economic
expansion and industrial development. Its network connects every
major metropolitan area in the eastern United States, where nearly
two-thirds of the nation’s population resides. It also links more
than 240 short-line railroads and more than 70 ocean, river and
lake ports with major population centers and farming towns alike.
More information about CSX Corp. and its subsidiaries is available
at www.csx.com.
Contacts:MediaCPKCmediarelations@cpkcr.com
CSXBryan Tucker 855-955-6397
Investment CommunityCPKCChris De Bruyn
403-319-3591investor@cpkcr.com
CSXMatthew Korn904-366-4515
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