Canadian Pacific has received a CA$15 million (US$12.1 million) grant from Emissions Reduction Alberta (ERA) to expand its hydrogen locomotive program.

The grant, announced Tuesday, will increase the number of hydrogen locomotive conversions from one locomotive to three, and it will add more hydrogen production and fueling facilities.

CP’s hydrogen locomotive program, launched in December 2020, seeks to demonstrate and evaluate the technical performance of hydrogen-powered locomotives and support fueling infrastructure. 

“In expanding this groundbreaking project, CP is demonstrating its commitment to combating climate change through transformative technology,” said Keith Creel, CP’s president and chief executive officer. “I am very pleased that ERA selected this program for a grant and I eagerly anticipate seeing a hydrogen-powered locomotive move CP customer freight in the near future.”

The grant from ERA’s Shovel Ready Challenge program is a 50/50 matching grant, with CP (NYSE: CP) planning to invest CA$15 million in expanding the program.

Through the grant, CP hopes to convert an additional line-haul locomotive and a yard switcher locomotive and refine the process of converting diesel-electric powertrains to hydrogen-electric powertrains.

CP also plans to use the grant to install hydrogen production and fueling facilities at CP rail yards in Calgary and Edmonton in Alberta. CP says the Calgary fueling facility will include an electrolysis plant to produce hydrogen from water and it will operate on renewable power from solar panels at CP’s headquarters campus and produce zero greenhouse gas emissions. Meanwhile, the Edmonton facility includes a small-scale steam methane reformation system that will generate hydrogen from Alberta’s natural gas resources, and CP plans to construct the system to accommodate the possible future addition of greenhouse gas capture equipment.

“Alberta is investing to lead the transition to affordable, reliable and clean energy. CP’s initiative represents a highly compelling opportunity to catalyze the hydrogen economy in Alberta and around the world,” said Steve MacDonald, CEO of Emissions Reduction Alberta. “The project will help scale up technology and bring down the costs of deploying hydrogen to address the critical challenge of decarbonizing the long- haul, heavy-freight sector.”

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Related links:

• Canadian Pacific launches hydrogen-powered locomotive project

• Report: Batteries usually more feasible, environmentally beneficial than green hydrogen

• Technology plays key role in decarbonizing freight rail: Wabtec exec