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CN Continues to Advance Decarbonization Efforts with EMD® Mainline Hybrid Locomotive from Progress Rail

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CN announces the purchase of its first hybrid diesel-battery electric locomotive to reduce emissions and support the transition to a low carbon economy. The company collaborates with the Province of British Columbia to test the plug-in hybrid mainline locomotive, aiming to increase knowledge on battery technology and alternative propulsion solutions.
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The introduction of a hybrid diesel-battery electric mainline locomotive by CN signifies a strategic move in the transportation sector towards environmental sustainability. Rail transportation is historically more fuel-efficient compared to road transport and CN's initiative could further enhance this advantage. The collaboration with the Province of British Columbia underlines a growing trend of public-private partnerships in the pursuit of reducing carbon footprints.

From an environmental perspective, the testing of alternative propulsion technologies, such as the plug-in hybrid locomotive, is pivotal in understanding the practical implications of such innovations. The operational and environmental data gathered from the trials in varying conditions will be critical in assessing the viability and performance of the technology. The potential benefits include not only direct emission reductions but also the advancement of battery technology which is essential for a broader transition to low-carbon transportation solutions.

Furthermore, CN's commitment to science-based targets and its previous recognitions by S&P Global and CDP suggest a robust sustainability framework. This may enhance CN's reputation among environmentally conscious investors and customers, potentially influencing the company's stock performance positively in the long run.

CN's acquisition of the first hybrid diesel-battery electric locomotive in North America is a notable development within the transportation industry. This move could position CN as a leader in innovation and eco-friendly practices within the rail sector. The financial support from the Province of British Columbia is an indicator of governmental backing for sustainable initiatives, which can be seen as a positive signal to investors.

Considering the industry average, CN's claim of being the most fuel-efficient railway in North America by using approximately 15% less locomotive fuel per gross ton mile could translate into cost savings and improved margins. This efficiency can provide CN with a competitive edge, especially in a market where fuel prices are volatile and environmental regulations are becoming stricter.

The success of this initiative may lead to retrofitting a larger portion of CN's fleet, which could result in significant operational cost reductions over time. Investors should monitor the outcomes of the testing phase closely, as positive results could lead to broader implementation and further solidify CN's market position.

The deployment of a hybrid diesel-battery electric locomotive by CN marks an important step in the adoption of clean energy technologies in the rail industry. The testing of this locomotive will provide valuable insights into the scalability of battery technology for heavy-duty transportation. As the rail industry looks to reduce its carbon footprint, the development and refinement of battery technology are essential.

It is important to note that the transition to low-emission transportation solutions is not only environmentally driven but also economically motivated. The long-term cost savings from reduced fuel consumption and potential government incentives for clean technology adoption could improve CN's financial performance. Additionally, advancements in battery technology could lead to decreased reliance on traditional fuels and increased energy independence.

Investors should consider the implications of these technological advancements on CN's operational costs and its potential to meet stringent environmental regulations in the future. The company's proactive approach to decarbonization could also open up new business opportunities and partnerships, further impacting its market valuation.

CN is committed to playing a key role in the transition to a low carbon economy

Financial support from the Province of British Columbia will contribute to reducing emissions

MONTREAL, April 05, 2024 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) is proud to announce the purchase of its first hybrid diesel-battery electric mainline locomotive from Progress Rail, a Caterpillar Company, as part of its decarbonization plans. The EMD® will be tested to understand the potential impact and opportunity related to retrofitting a larger portion of the Company’s fleet. CN is collaborating on this initiative with the Province of British Columbia who awarded approximately $3.2 million to the Company under the Clean BC Go Electric Commercial Vehicle Pilots Program.

The plug-in hybrid mainline locomotive, a first of its kind in North America, will be evaluated on CN’s mainline in British Columbia, starting in Prince George and the northern part of the province, under varying operational and weather conditions. The testing will increase CN’s and the rail industry’s knowledge on battery technology and more specifically, on the impact of alternative propulsion technology on mainline locomotives. As different alternative propulsion solutions will require batteries – including hybrid, battery-electric, and hydrogen fuel cell locomotives – CN anticipates this initiative will contribute to further develop this key technology, while immediately reducing emissions.

“CN is committed to supporting the transition to a net-zero economy and proud of the progress we’ve made so far on our decarbonization journey. We know rail is part of the climate solution and we are determined to do our part by setting ambitious science-based targets. Today’s announcement is another milestone on moving forward towards a more sustainable future.”

- Patrick Whitehead, Executive Vice-President and Chief Network Operating Officer, CN 

“We are committed to developing innovative technologies that save fuel and reduce greenhouse gas emissions. Our EMD hybrid locomotive is a versatile solution that fits various customer applications, providing increased performance and a lower carbon footprint.”

- Jack Zhang, Executive Vice President of Locomotive, Progress Rail

“British Columbians want a cleaner, climate-friendly future, and we are taking actions to make that a reality. Our vision is to build a low-carbon future that supports key sectors like commercial transportation while mitigating the impacts of climate change and meeting our greenhouse gas reduction targets. CN’s announcement takes us one step closer to this vision, using innovative clean technologies to reduce fuel usage and pollution”

- Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation

CN is the most fuel-efficient railway in North America, using approximately 15% less locomotive fuel per gross ton mile than the industry average. In 2023, CN was recognized for its leadership in sustainability by S&P Global and its leadership on climate change by global environmental non-profit CDP. The continuing successful development and availability of alternative propulsion technology is part of a portfolio of emissions reduction initiatives to support CN in achieving its greenhouse gas emission targets.

About CN
CN is a world-class transportation leader and trade-enabler. Essential to the economy, to the customers, and to the communities it serves, CN safely transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year. CN's network connects Canada’s Eastern and Western coasts with the U.S. South through an 18,800-mile rail network. CN and its affiliates have been contributing to community prosperity and sustainable trade since 1919. CN is committed to programs supporting social responsibility and environmental stewardship.

   Contacts:

MediaInvestment Community
Jonathan AbecassisStacy Alderson
Director, Public Affairs andAssistant Vice-President
Media RelationsInvestor Relations
438-455-3692
media@cn.ca
514-399-0052
investor.relations@cn.ca


FAQ

What is CN's ticker symbol?

CN's ticker symbol is CNI.

What type of locomotive did CN purchase from Progress Rail?

CN purchased its first hybrid diesel-battery electric mainline locomotive from Progress Rail.

How much financial support did CN receive from the Province of British Columbia?

CN received approximately $3.2 million from the Province of British Columbia under the Clean BC Go Electric Commercial Vehicle Pilots Program.

Where will the plug-in hybrid mainline locomotive be tested?

The plug-in hybrid mainline locomotive will be tested on CN's mainline in British Columbia, starting in Prince George and the northern part of the province.

What are the benefits of CN's decarbonization initiative?

CN's decarbonization initiative aims to reduce emissions, increase knowledge on battery technology, and develop alternative propulsion solutions.

Canadian National Railway Company

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About CNI

The Canadian National Railway Company is a Canadian Class I freight railway headquartered in Montreal, Quebec, which serves Canada and the Midwestern and Southern United States.