Ballard Power Systems to Deliver 98 Hydrogen Engines to Canadian Pacific Kansas City
Vancouver, Friday, 6 December 2024.
Ballard Power Systems has secured a deal to supply 98 hydrogen engines to Canadian Pacific Kansas City, advancing sustainable rail transport and reducing reliance on diesel locomotives.
Major Supply Agreement Details
Ballard Power Systems (NASDAQ: BLDP; TSX: BLDP) has signed a Long Term Supply Agreement with Canadian Pacific Kansas City (TSX: CP; NYSE: CP) for the delivery of 98 hydrogen fuel cell engines [1][3]. Each engine will have a nameplate capacity of 200 kilowatts, collectively providing approximately 20 megawatts of fuel cell power [1]. The company expects to complete all deliveries during 2025 [1][3].
Building on Existing Partnership
This new agreement builds upon a successful partnership that began in 2021, during which Ballard has already supplied CPKC with approximately 10 megawatts of fuel cell engines [1][3]. CPKC currently operates three hydrogen locomotives in its fleet, demonstrating the company’s commitment to testing and implementing hydrogen fuel cell technology in freight operations [1].
Strategic Importance for Rail Decarbonization
The deal represents a significant step in the decarbonization of North American rail transport [6]. Ballard Power Systems, headquartered in Burnaby, B.C., has established itself as a world leader in hydrogen fuel cell power systems [2]. The company’s technology offers multiple benefits, including lower energy costs, extended operating lifetimes, and positive environmental impacts [2].
Market Impact and Future Outlook
This substantial order reinforces the growing confidence in hydrogen fuel cells as a viable alternative to traditional diesel engines in the freight rail sector [3]. The partnership between Ballard and CPKC demonstrates the increasing commercial adoption of hydrogen technology in heavy-duty transportation applications [2][6].