CN Continues to Advance Locomotive Innovations

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CN (NYSE: CNI) announced progress in its hybrid locomotive development program, expanding from one pilot unit to three locomotives under test and targeting conversion of two additional locomotives to hybrid-electric platforms with AC traction technology by the end of 2026.

According to CN, the initial pilot delivered up to 50% fuel-efficiency improvement, fewer traditional engine-related failures, higher horsepower, and reduced idling, lowering noise and emissions. The upgraded design features solid-state battery technology, a larger 2.8 MWh battery system paired with an 800 HP Tier 4 engine, and increased total horsepower from 3,200 to 3,800 HP, as CN works to modernize yard power across its North American network.

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08/14/2026 - 09:30 AM

MONTREAL, Aug. 14, 2026 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) today announced the advancement of its hybrid locomotive development program, marking another important milestone in the company’s commitment to innovative, more efficient and more sustainable rail operations.

Following a successful initial pilot project with a hybrid locomotive, CN now has three locomotives being tested and is working to transform two additional locomotives into hybrid-electric platforms with AC traction technology by the end of 2026. Through this industry-first approach, CN expects to improve fuel efficiency, reliability, and operational performance, while extending asset life and reducing emissions.

“This milestone represents another important step in CN’s locomotive innovation and modernization journey. By repowering and enhancing existing yard locomotives, we are being more efficient while supporting service to our customers and more sustainable operations for the long term.”

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

In its successful pilot project, CN has achieved up to a 50 percent improvement in fuel efficiency, along with significant reductions in traditional engine-related failures, increased horsepower, and reduced idling contributing to lower noise and emissions in the communities where CN operates. Testing was conducted in both hot and extreme cold conditions, helping teams further optimize performance in real-world operating environments.

Some new features include:

New solid-state battery technology replacing conventional lead-acid batteries
A larger 2.8MWh battery system paired with a 800HP Tier 4 engine
Increased horsepower from 3,200 to 3,800 HP
AC traction motors integrated into a DC motor frame while maintaining the same truck interface

This initiative reflects strong cross-functional collaboration between CN’s mechanical, transportation, procurement, and sustainability teams as the Company continues to enhance the next generation of yard power for its North American network.

For more information, please view our video here.

About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.

Contacts:

Media	Investment Community
Ashley Michnowski	Jamie Lockwood
Senior Manager	Vice-President
Media Relations	Investor Relations and Special Projects
(438) 596-4329	(514) 399-0052
media@cn.ca	investor.relations@cn.ca

FAQ

What did CN (NYSE: CNI) announce about its hybrid locomotive program on August 14, 2026?

CN announced it is advancing its hybrid locomotive development program, expanding from a successful pilot to three locomotives under test. According to CN, it also plans to convert two additional locomotives to hybrid-electric platforms with AC traction technology by the end of 2026.

How much fuel-efficiency improvement has CN reported from its hybrid locomotive pilot?

CN reported up to a 50 percent improvement in fuel efficiency from its hybrid locomotive pilot. According to CN, the pilot also showed reduced traditional engine-related failures, increased horsepower, and less idling, which contributed to lower noise and emissions in surrounding communities.

What are the key technical features of CN’s new hybrid yard locomotives?

CN’s new hybrid locomotives feature solid-state battery technology and a 2.8 MWh battery system paired with an 800 HP Tier 4 engine. According to CN, total horsepower increases from 3,200 to 3,800 HP, with AC traction motors integrated into a DC motor frame.

How many hybrid locomotives is CN testing and what are its 2026 plans?

CN is currently testing three hybrid locomotives in its rail operations. According to CN, it is also working to transform two additional locomotives into hybrid-electric platforms with AC traction technology by the end of 2026, focusing on yard service applications.

How were CN’s hybrid locomotives tested across different operating conditions?

CN tested its hybrid locomotive pilot in both hot and extreme cold conditions to reflect real-world operations. According to CN, this environmental testing helped teams further optimize performance, reliability, and efficiency for deployment across its North American rail network.

How do CN’s hybrid locomotives support its sustainability goals and operations?

CN’s hybrid locomotives are intended to cut fuel use, emissions, noise, and idling in yard operations. According to CN, repowering existing yard locomotives is designed to improve efficiency, extend asset life, and support more sustainable long-term service for customers.