Canadian Pacific Kansas City Limited (CPKC) and Teck Resources Limited have announced a long-term rail agreement to transport steelmaking coal from Teck's four operations in southeastern British Columbia. The agreement runs until the end of 2026 and builds on existing services between the two companies.
As part of their shared commitment to sustainability and building green transportation corridors, CPKC and Teck also plan to collaborate on a unique pilot program that integrates the use of CPKC's hydrogen locomotives into Teck's steelmaking coal supply chain. The aim of this pilot program is to reduce greenhouse gas emissions and testing is expected to begin in early 2024. The companies also plan to work together to increase the resilience of the Canadian supply chain by investing in infrastructure and technology from origin to destination. This agreement reflects both companies' commitment to working together to reduce emissions and increase supply chain reliability to deliver the resources needed for a low-carbon future.
“This collaboration with CPKC to pioneer hydrogen locomotive technology supports our climate action strategy and our objective of achieving net zero by 2050,” said Jonathan Price, CEO, Teck. “The agreement complements our Neptune Terminals investment and other secured West Coast port capacity to support the efficient movement of our high-quality Canadian steelmaking coal to our global customers.”
The integration of hydrogen locomotives into Teck's supply chain is a significant step towards achieving a low-carbon future in the transportation sector. Hydrogen locomotives offer an alternative to traditional diesel-powered locomotives and could help reduce greenhouse gas emissions and improve air quality. CPKC has already made significant progress in developing hydrogen locomotives, having launched North America's first hydrogen-powered train in 2020.