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CN Launches New Medium Horsepower Hybrid Locomotive Pilot Project

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CN (TSX: CNR) (NYSE: CNI) has launched a new medium horsepower hybrid electric locomotive pilot project in collaboration with Knoxville Locomotive Works. The innovative 3,200 horsepower hybrid unit features a 2.4MWh-700HP battery-diesel engine that is 100% biofuel ready and offers up to 60% increased horsepower compared to traditional yard locomotives.

The hybrid system aims to achieve up to 50% reduction in fuel consumption compared to typical locomotives in similar operations. The pilot will be implemented in phases over six months across various CN yards and branch lines in Tennessee, Mississippi, Louisiana, and eventually in Western Canada to test cold weather performance.

This initiative is part of CN's broader sustainability program aimed at achieving net-zero emissions through deep decarbonization efforts.

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Positive

  • New hybrid locomotive expected to reduce fuel consumption by up to 50%
  • 60% increase in horsepower capability compared to traditional yard locomotives
  • Versatile 100% biofuel-ready engine system

Negative

  • Six-month testing period required before potential wider implementation
  • Performance in cold weather conditions still needs to be validated

Insights

The introduction of CN's hybrid locomotive pilot represents a strategic technological advancement in rail operations. The 2.4MWh-700HP battery-diesel engine configuration with 3,200 medium horsepower capability showcases significant improvements over traditional yard locomotives. The projected 50% reduction in fuel consumption is particularly noteworthy, as it could translate to substantial operational cost savings across CN's extensive network.

The biofuel-ready design and 60% increase in horsepower demonstrate forward-thinking engineering that addresses both current operational needs and future environmental regulations. The phased testing approach across different geographical locations and climate conditions is important for validating the technology's reliability and performance metrics. However, the real value proposition lies in the potential scalability - if successful, this hybrid system could become a blueprint for modernizing yard operations across the entire North American rail industry.

This pilot project aligns with the increasing regulatory pressure on transportation companies to reduce their environmental footprint. The 100% biofuel compatibility coupled with hybrid technology positions CN favorably in the context of emerging carbon pricing mechanisms and environmental regulations. While the immediate impact on CN's overall emissions will be modest during the pilot phase, the successful implementation across yard operations could significantly contribute to the company's net-zero ambitions.

The strategic deployment across different climate zones, particularly including cold weather testing in Western Canada, demonstrates a comprehensive approach to validating the technology's viability. This thorough testing methodology will be important for addressing potential challenges in battery performance and operational reliability across varying environmental conditions.

MONTREAL, Jan. 16, 2025 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) is proud to announce the launch of its new medium horsepower hybrid electric locomotive developed in collaboration with Knoxville Locomotive Works (KLW). This innovative hybrid locomotive will undergo testing in various operational conditions across CN’s network as a pilot project, to evaluate its potential to enhance operational efficiency and fuel savings, marking another step towards more modern and sustainable rail operations.

The 3,200 medium horsepower hybrid unit is built on the traditional CN low horsepower locomotive operating in yards and branch lines. It includes a modern control system, increased horsepower of up to 60%, powered by a 2.4MWh-700HP battery-diesel engine, that is 100% biofuel ready. The hybrid system targets up to approximately 50% reduction in fuel consumption compared to a typical locomotive used in similar operations today. CN expects this initiative will help drive the advancement of hybrid technology in locomotives and contribute to immediate emissions reductions.

“This CN-led pilot represents another milestone in our sustainability journey and focus on emerging technologies. We believe that this hybrid system, if successful, could substantially reduce greenhouse gas emissions from our yard operations, while maintaining our commitment to customers and communities across our network.”

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

The hybrid locomotive will be deployed in phases over the next six months across several CN yards and branch lines, including locations in Tennessee, Mississippi, and Louisiana. Testing will also eventually include operations in cold weather conditions in Western Canada. This phased approach will enable CN to evaluate efficiency and operating protocols for the locomotive. This project is part of CN’s program to meet the deep decarbonization required to achieve net-zero emissions, with the other previously announced locomotive pilots.

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 Gulf of Mexico, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919. 

About Knoxville Locomotive Works Inc.
Established in 1998, Knoxville Locomotive Works, Inc. (KLW) has repowered, upgraded, repaired and remanufactured approximately 1,000 locomotives ranging from DC/AC modernizations to low horsepower switchers and high horsepower line-haul units. Currently, KLW manufactures both low and high horsepower locomotives that are EPA Tier 4 Certified and CARB Verified. With an employee base totaling over 300 years of combined railroad experience, our focus is building reliable, sustainable, and adaptable locomotives that meet our world’s ever-changing environmental needs and technological advancements. Learn more at www.goklw.com

CN Forward-Looking Statements
Certain statements by CN included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including relating to CN’s sustainability-related strategies and targets and commitments, including CN’s climate goals and expected benefits of new technologies. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,” “plans,” “targets,” or other similar words. Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

Contacts: 
MediaInvestment Community
Ashley MichnowskiStacy Alderson
Senior ManagerAssistant Vice-President
Media RelationsInvestor Relations
(438) 596-4329
media@cn.ca
(514) 399-0052
investor.relations@cn.ca

FAQ

What are the key features of CN's new hybrid locomotive (CNI)?

CN's new hybrid locomotive features a 3,200 medium horsepower capacity, a 2.4MWh-700HP battery-diesel engine that is 100% biofuel ready, and offers up to 60% increased horsepower compared to traditional yard locomotives.

How much fuel reduction does CN (CNI) expect from its new hybrid locomotive?

CN expects up to approximately 50% reduction in fuel consumption compared to typical locomotives used in similar operations.

Where will CN (CNI) test its new hybrid locomotive in 2025?

The hybrid locomotive will be tested across CN yards and branch lines in Tennessee, Mississippi, Louisiana, and later in Western Canada for cold weather testing.

How long is CN's (CNI) hybrid locomotive pilot project expected to last?

The pilot project will be deployed in phases over a six-month period across several CN locations.

What is the battery-diesel engine capacity of CN's (CNI) new hybrid locomotive?

The hybrid locomotive is equipped with a 2.4MWh-700HP battery-diesel engine system.
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