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CPKC places follow-on order for approximately 20 MW of Ballard fuel cell engines for North American locomotives

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Ballard Power Systems has signed a new Long Term Supply Agreement with Canadian Pacific Kansas City (CPKC) for 98 fuel cell engines, totaling approximately 20 megawatts (MW) of power. Each engine has a 200 kW capacity, with deliveries expected in 2025.

This agreement builds upon their existing partnership started in 2021, which has already delivered about 10 MW of fuel cell engines. CPKC currently operates three hydrogen locomotives, with prototype testing ongoing since 2022. The new engines will support CPKC's expanding hydrogen locomotive program, focusing on switching and freight service applications in Alberta, Canada.

Ballard Power Systems ha firmato un nuovo Accordo di Fornitura a Lungo Termine con Canadian Pacific Kansas City (CPKC) per 98 motori a celle a combustibile, per un totale di circa 20 megawatt (MW) di potenza. Ogni motore ha una capacità di 200 kW, con consegne previste per il 2025.

Questo accordo si basa sulla loro partnership esistente iniziata nel 2021, che ha già fornito circa 10 MW di motori a celle a combustibile. CPKC attualmente opera tre locomotive a idrogeno, con test di prototipi in corso dal 2022. I nuovi motori supporteranno l'espansione del programma di locomotive a idrogeno di CPKC, concentrandosi su applicazioni di manovra e servizio merci in Alberta, Canada.

Ballard Power Systems ha firmado un nuevo Acuerdo de Suministro a Largo Plazo con Canadian Pacific Kansas City (CPKC) para 98 motores de celdas de combustible, que totalizan aproximadamente 20 megavatios (MW) de potencia. Cada motor tiene una capacidad de 200 kW, con entregas previstas para 2025.

Este acuerdo se basa en su asociación existente que comenzó en 2021, la cual ya ha entregado alrededor de 10 MW de motores de celdas de combustible. CPKC actualmente opera tres locomotoras de hidrógeno, con pruebas de prototipo en curso desde 2022. Los nuevos motores respaldarán el programa de locomotoras de hidrógeno en expansión de CPKC, enfocado en aplicaciones de maniobra y transporte de carga en Alberta, Canadá.

발라드 파워 시스템즈캐나다 퍼시픽 캔자스시티 (CPKC)와 98개의 연료 전지 엔진에 대한 새로운 장기 공급 계약을 체결했습니다. 이 계약은 총 약 20메가와트(MW)의 전력을 포함하며, 각 엔진의 용량은 200kW입니다. 배송은 2025년에 예정되어 있습니다.

이 계약은 2021년에 시작된 기존 파트너십을 기반으로 하며, 그동안 약 10MW의 연료 전지 엔진이 공급되었습니다. CPKC는 현재 3대의 수소 기관차를 운영하고 있으며, 2022년부터 프로토타입 테스트가 진행되고 있습니다. 새로운 엔진은 CPKC의 수소 기관차 프로그램 확대를 지원하여 알버타, 캐나다에서 전환 및 화물 서비스 응용 프로그램에 중점을 둘 것입니다.

Ballard Power Systems a signé un nouvel Accord de Fourniture à Long Terme avec Canadian Pacific Kansas City (CPKC) pour 98 moteurs à hydrogène, représentant environ 20 mégawatts (MW) de puissance. Chaque moteur a une capacité de 200 kW, avec des livraisons prévues pour 2025.

Ce contrat s'appuie sur leur partenariat existant commencé en 2021, qui a déjà fourni environ 10 MW de moteurs à hydrogène. CPKC exploite actuellement trois locomotives à hydrogène, avec des tests de prototypes en cours depuis 2022. Les nouveaux moteurs soutiendront l'expansion du programme de locomotives à hydrogène de CPKC, en se concentrant sur les applications de manœuvre et de transport de marchandises en Alberta, Canada.

Ballard Power Systems hat einen neuen Langzeitliefervertrag mit Canadian Pacific Kansas City (CPKC) über 98 Brennstoffzellenmotoren abgeschlossen, die insgesamt etwa 20 Megawatt (MW) Leistung liefern. Jeder Motor hat eine Kapazität von 200 kW, und die Lieferungen sind für 2025 vorgesehen.

Dieser Vertrag baut auf ihrer bestehenden Partnerschaft auf, die 2021 begann und bereits etwa 10 MW Brennstoffzellenmotoren geliefert hat. CPKC betreibt derzeit drei Wasserstofflokomotiven, deren Prototypentests seit 2022 laufen. Die neuen Motoren werden das wachsende Wasserstofflokomotivprogramm von CPKC unterstützen, das sich auf Rangier- und Gütertransportanwendungen in Alberta, Kanada, konzentriert.

Positive
  • New Long Term Supply Agreement secured for 98 fuel cell engines
  • 20 MW total order value with deliveries scheduled for 2025
  • Expansion of existing partnership that has already delivered 10 MW
  • Strategic positioning in the North American freight rail market
Negative
  • None.

Insights

The 20 MW follow-on order from CPKC marks a significant milestone in the decarbonization of freight rail transportation. With 98 fuel cell engines at 200 kW each, this represents one of the largest commercial deployments of hydrogen fuel cells in the rail sector. The successful integration of the initial 10 MW and expansion to operational hydrogen locomotives demonstrates technical validation and growing market confidence. The long-term supply agreement suggests CPKC's commitment to hydrogen technology as a viable alternative to diesel engines. This order could catalyze broader adoption in the North American freight rail market, which has been traditionally dependent on diesel power. The cold weather operability and performance characteristics mentioned address key technical requirements for rail applications, marking a important step toward commercial scalability.

This deal represents a significant scaling up of CPKC's hydrogen locomotive program from 3 current hydrogen locomotives to a much larger fleet. The timing of deliveries in 2025 indicates an accelerated commercialization timeline. For Ballard, securing a major Class 1 railroad as a long-term customer validates their technology and could lead to additional orders from other rail operators. The rail sector's transition to hydrogen could provide substantial recurring revenue through fuel cell engine sales and maintenance. This order's size suggests CPKC is moving beyond pilot testing to commercial deployment, potentially setting an industry precedent. The success of this program could influence regulatory frameworks and infrastructure development for hydrogen in rail transportation.

VANCOUVER, BC, Dec. 5, 2024 /PRNewswire/ - Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) today announced the signing of a new Long Term Supply Agreement ("LTSA") with Canadian Pacific Kansas City ("CPKC") (TSX: CP) (NYSE: CP), including the initial supply of 98 fuel cell engines for use in the North American freight rail market. Each engine has a nameplate of 200 kW, totaling approximately 20 megawatts (MW) of fuel cell power. Deliveries of all 98 engines are expected in 2025.

The LTSA builds on an existing partnership between Ballard and CPKC, which started in 2021, and has included delivery of approximately 10 MW of fuel cell engines to date and the successful integration of Ballard fuel cell engines into hydrogen-powered locomotives for regular switching and freight service applications in Alberta, Canada. The fuel cell engines purchased from Ballard will support the expansion of CPKC's hydrogen locomotive program.

"We are thrilled with the opportunity to further develop our strategic relationship with CPKC to decarbonize not only their locomotive fleet but also participate in the electrification of freight rail across North America," said Randy MacEwen, President and CEO of Ballard Power. "This order represents a step forward in CPKC's decarbonization vision and confidence in hydrogen fuel cells as a potential long-term replacement of diesel engines, providing the environmental benefits along with long range, fast refueling, heavy payloads, and cold weather operation."

Prototype diesel freight locomotives retrofitted with hydrogen fuel cells, hydrogen storage and battery packs have undergone various testing at CPKC since 2022. CPKC currently has three hydrogen locomotives in operation. 

About Ballard Power Systems

Ballard Power Systems' (NASDAQ: BLDP; TSX: BLDP) vision is to deliver fuel cell power for a sustainable planet. Ballard zero-emission PEM fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels, and stationary power. To learn more about Ballard, please visit www.ballard.com.

This release contains forward-looking statements concerning anticipated product performance and other characteristics, product deliveries and deployments. These forward-looking statements reflect Ballard's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such forward-looking statements are based on Ballard's assumptions relating to its financial forecasts and expectations regarding its product development efforts, manufacturing capacity, and market demand.

These statements involve risks and uncertainties that may cause Ballard's actual results to be materially different, including general economic and regulatory changes, detrimental reliance on third parties, successfully achieving our business plans and achieving and sustaining profitability. For a detailed discussion of these and other risk factors that could affect Ballard's future performance, please refer to Ballard's most recent Annual Information Form. Readers should not place undue reliance on Ballard's forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward-looking statements, other than as required under applicable legislation.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cpkc-places-follow-on-order-for-approximately-20-mw-of-ballard-fuel-cell-engines-for-north-american-locomotives-302323590.html

SOURCE Ballard Power Systems Inc.

FAQ

How many fuel cell engines did CPKC order from Ballard Power Systems (BLDP) in December 2023?

CPKC ordered 98 fuel cell engines from Ballard Power Systems, each with 200 kW capacity, totaling approximately 20 megawatts of power.

When will Ballard Power Systems (BLDP) deliver the new fuel cell engines to CPKC?

The delivery of all 98 fuel cell engines is expected in 2025.

How many hydrogen locomotives does CPKC currently operate with Ballard (BLDP) fuel cells?

CPKC currently operates three hydrogen locomotives using Ballard fuel cell technology.

When did Ballard Power Systems (BLDP) and CPKC start their partnership?

The partnership between Ballard Power Systems and CPKC began in 2021.

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