ATCO EnPower and CPKC complete construction of two hydrogen production & refuelling stations in Alberta

Rhea-AI Summary

CPKC and ATCO EnPower have completed construction of two hydrogen production and refuelling facilities in Calgary and Edmonton. The facilities, now fully operational, feature 1-megawatt electrolyzers, compression, storage, and dispensing systems for locomotive refuelling. The Calgary facility is partially powered by CPKC's existing 5 MW solar power facility. These stations support CPKC's Hydrogen Locomotive Program, which involves retrofitting diesel locomotives with hydrogen fuel cells to eliminate direct emissions. ATCO EnPower will operate both facilities under a signed agreement.

Positive

• Implementation of zero-emission hydrogen fuel cell technology in locomotives
• Integration with existing renewable energy infrastructure (5 MW solar facility)
• Operational infrastructure ready for hydrogen locomotive program

Negative

• None.

Insights

Clean Energy Infrastructure Analyst

The completion of two hydrogen refueling stations marks a significant milestone in CPKC's hydrogen locomotive program, but the immediate financial impact is The 1MW electrolyzer capacity at each station suggests a modest initial scale, primarily focused on testing and demonstration. The solar-powered component in Calgary leverages existing infrastructure, demonstrating cost-efficient integration.

While this positions CPKC at the forefront of rail decarbonization, material financial benefits will depend on successful locomotive conversion rates and operational cost comparisons with diesel. The partnership with ATCO EnPower reduces implementation risks and capital requirements through their operate-and-maintain agreement. This infrastructure investment represents an important step toward future-proofing operations against carbon regulations, but meaningful revenue impact is likely years away.

Transportation Industry Analyst

This development represents a strategic move in CPKC's long-term sustainability roadmap, though near-term operational impact will be minimal. The dual-location approach in Calgary and Edmonton creates a practical testing corridor for hydrogen locomotive deployment. Key advantages include reduced exposure to future carbon pricing and potential regulatory compliance benefits.

However, the transition timeline from diesel to hydrogen locomotives will be gradual, with significant fleet conversion costs ahead. The project's success will heavily depend on hydrogen production costs versus diesel prices and the reliability of converted locomotives in real-world operations. While pioneering, this initiative's impact on CPKC's $68B market cap will be negligible in the short term.

CALGARY, AB, Nov. 20, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) and ATCO EnPower, a division of Canadian Utilities Limited (TSX: CU) today said construction of hydrogen production and refuelling facilities in Calgary and in Edmonton is now complete and the facilities are fully operational.

As part of its innovative Hydrogen Locomotive Program, CPKC is retrofitting a number of diesel locomotives with hydrogen fuel cells so they can operate without directly generating emissions.

"These fuelling facilities are an important part of advancing the ongoing testing of our hydrogen locomotives and advancing the development of our industry-leading program working toward a lower carbon transportation future," said Kyle Mulligan, CPKC Assistant Vice President, Operations Technology.

ATCO EnPower provided engineering, procurement and construction services for each of the dedicated, on-site hydrogen locomotive refuelling stations and has signed an agreement to operate these facilities.

"We are proud to announce the completion of the two-hydrogen production and refuelling stations for CPKC. This advancement marks significant progress in utilizing hydrogen as a fuel source for commercial transportation and reflects ATCO EnPower's commitment to building a sustainable future by providing innovative energy solutions for our customers," said Mark Brown, Executive Vice President of Projects and Operations, ATCO EnPower.  

Each of the facilities includes a 1 - megawatt (MW) electrolyzer, compression, storage, and dispensing systems for locomotive refuelling. In Calgary, the electrolyzer is powered in part by renewable electricity from CPKC's existing 5 MW solar power facility co-located at CPKC's headquarters.

The two new facilities will serve as a model for future and complementary projects across the country. By harnessing the power of hydrogen, CPKC aims to create a cleaner, more efficient mode of freight transportation that can serve as a model for the rail industry with support from ATCO EnPower. 

With operations in Canada and Mexico, ATCO EnPower is leading the energy transition with inspired energy solutions, including renewable energy, carbon capture and storage, hydrogen and derivatives, and energy storage. 

About CPKC

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf of México to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR

About Canadian Utilities

Canadian Utilities Limited and its subsidiary and affiliate companies have approximately 9,000 employees and assets of $23 billion. Canadian Utilities, an ATCO company, is a diversified global energy infrastructure corporation delivering essential services and innovative business solutions. ATCO Energy Systems delivers energy for an evolving world through its electricity and natural gas transmission and distribution, and international operations segments. ATCO EnPower creates energy solutions in the areas of renewables, energy storage, industrial water and alternative fuels. ATCO Australia develops, builds, owns and operates energy and infrastructure assets. ATCOenergy and Rümi provide retail electricity and natural gas services, home maintenance services and professional home advice that bring exceptional comfort, peace of mind and freedom to homeowners and customers. More information can be found at www.canadianutilities.com. 

View original content to download multimedia:https://www.prnewswire.com/news-releases/atco-enpower-and-cpkc-complete-construction-of-two-hydrogen-production--refuelling-stations-in-alberta-302310633.html

SOURCE CPKC

FAQ

What are the locations of CPKC's new hydrogen refuelling stations?

CPKC's new hydrogen production and refuelling stations are located in Calgary and Edmonton, Alberta.

What is the power capacity of CPKC's hydrogen facility electrolyzers?

Each hydrogen facility features a 1-megawatt (MW) electrolyzer for hydrogen production.

How is CPKC's Calgary hydrogen facility powered?

The Calgary facility's electrolyzer is partially powered by renewable electricity from CPKC's existing 5 MW solar power facility at their headquarters.

What is the purpose of CPKC's Hydrogen Locomotive Program?

CPKC's Hydrogen Locomotive Program aims to retrofit diesel locomotives with hydrogen fuel cells to operate without directly generating emissions.