Project Overview
In October 2020, Canadian Pacific Rail Kansas City Southern (CPKC) announced plans to design and build North America’s first line-haul hydrogen-powered locomotive using fuel cells and batteries to power the locomotive. Approved for funding through ERA’s Shovel Ready Challenge in 2021, with ERA support through the Government of Alberta, CPKC was able to increase the number of hydrogen locomotive conversions in the project from one to three and add electrolytic hydrogen production and fueling facilities in Calgary and Edmonton.
By project completion in 2024, CPKC successfully demonstrated the world’s first freight hydrogen-powered locomotives using made in Alberta technology in partnership with Calgary-based NRE, Innisfail-based SME Bilton, and ATCO; initiated to a follow-on project with ERA; established a commercial partnership with US-based CSX to jointly commercialize the technology; and developed a pipeline of an estimated 200 hydrogen locomotives for customers around the world. It is one of ERA’s most successful projects funded to date.
Decarbonizing Freight Rail
Conventional North American freight locomotives use diesel generators to power electric traction motors, which dominate the freight rail sector. These are higher emitting but more challenging to decarbonize than passenger rail due to heavier load limits and more challenging routes. Traditionally, freight locomotives are refurbished at end of life, rather than bought new, and most locomotive platforms are many decades old.
CPKC determined that to decarbonize freight rail, traditional diesel-electric systems can be replaced with hydrogen fuel cells, batteries, hydrogen storage cylinders, and modern power electronics. This allows for retrofit of existing diesel-electric locomotives into zero-emission hydrogen fuel cell battery electric locomotives. While the motor is still electric, CPKC selected hydrogen fuel cells with batteries as the technology approach over a pure batteries (i.e. pure electric) approach due to its improved energy density, better hauling capacity, significantly shorter refueling times, and because the use of hydrogen more closely mirrors their current diesel-based operations.
Proven Viability of Hydrogen Alternatives to Diesel Fuel for Powering Freight Line-Haul Locomotives
With ERA support, CPKC built two locomotive prototypes: a 4-axle DC traction switcher (used in railyard operations) and a 6-axle AC traction line-haul locomotive (used in long distance, heavy duty operations). CPKC further refined its retrofit kit concept, which includes two preassembled ‘skids’ mounted to the top deck of the locomotive and a battery box mounted under the platform. The retrofit technology was designed by CPKC in partnership with Calgary-based electronics firm NRE, and the heavy machining and retrofit manufacturing was completed in Innisfail in partnership with the local SME Bilton Manufacturing.
Testing validated that hydrogen fuel cells and batteries can successfully power existing locomotive electric traction motors, delivering performance comparable to existing locomotives. All three of the locomotives CPKC has completed in Alberta are now in regular commercial operations. The work also enabled CPKC to reduce the cost of locomotive conversions, trending towards eventual cost parity with traditional diesel refurbishments.
The project also included installation of two electrolytic hydrogen refuelling facilities producing 350 kg/day each at the Ogden Calgary terminal and Clover Bar yard in Edmonton, deployed in partnership with ATCO. While these facilities alone will be insufficient for full scale commercial operations, they have allowed CPKC fuel autonomy for the project and the ability to generate significant hydrogen handling learnings in their staff.
As a result of the project, CPKC hired 50 staff, patented or is in the process of patenting at least ten new technologies, developed a robust ecosystem of local SMEs, helped inform hydrogen rail regulation and safety standards, and has developed a significant commercial pipeline for the technology. In July 2023, CPKC announced a partnership with US-based CSX to jointly develop an additional seven locomotives. The locomotive conversion kits are being manufactured by Bilton and then retrofitted onto locomotive frames at CSX facilities in West Virginia. Also in 2023, CP Rail merged with Kansas City Southern creating CPKC, greatly expanding their North American fleet and the market potential for this technology.
In 2024, CPKC and Air Products signed an agreement for Air Products to supply hydrogen to CPKC hydrogen locomotives across Alberta using hydrogen from its new Net Zero Canadian Hydrogen Complex, also supported by ERA through the Government of Alberta. In September 2024, CPKC used hydrogen locomotives to pull a fully loaded coal train over the Rocky Mountains from Sparwood to Golden BC, in one of the most challenging freight runs completed to date.
What’s next?
This project led to a successor project with ERA to further modularize the locomotive retrofit technology through the construction of 2 further locomotives in Alberta, in addition to creating commercial refueling infrastructure across the province through decarbonization of rail terminals in partnership with Air Products.
As of March 2025, CPKC announced plans to double its hydrogen test fleet in 2025, adding three more locomotives and a tender, and had ordered an additional 98 fuel cell engines for its hydrogen locomotive program and continues to explore opportunities for a full-scale manufacturing facility and locomotive battery production in the province. The technology has attracted global interest and CPKC now envisions a pipeline of over 200 locomotives.
The major next step in CPKC’s commercialization is to establish a manufacturing facility with Bilton in Innisfail. This would solidify Alberta’s leadership in hydrogen rail technology, enable decarbonization of locomotives across North America, and result in significant local and provincial economic benefits. Construction of such a facility could also ultimately attract local locomotive battery manufacturing in support of Canada’s and Alberta’s critical minerals strategy.