Ballard Power Systems Secures Major Fuel Cell Deal with Canadian Pacific Kansas City
Vancouver, BC – December 5, 2024 – Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) today announced a substantial leap forward in its efforts to decarbonize the freight rail industry. The company has signed a new Long Term Supply Agreement (LTSA) with Canadian Pacific Kansas City (CPKC) (TSX: CP) (NYSE: CP) for a significant quantity of fuel cell engines. This landmark agreement underscores the growing adoption of hydrogen fuel cell technology as a viable solution for reducing emissions in the transportation sector.
The LTSA encompasses the initial supply of 98 fuel cell engines, each boasting a nameplate power of 200 kW. This translates to a total of approximately 20 megawatts (MW) of fuel cell power, a considerable boost to CPKC’s ongoing efforts to transition towards cleaner energy sources. Deliveries of all 98 engines are slated for completion in 2025.
This latest agreement builds upon a successful partnership between Ballard and CPKC that commenced in 2021. This previous collaboration has already seen the delivery of approximately 10 MW of fuel cell engines and the successful integration of Ballard’s technology into hydrogen-powered locomotives. These locomotives are currently in regular switching and freight service applications in Alberta, Canada, demonstrating the practical viability and reliability of Ballard’s fuel cell solutions.
The fuel cell engines procured from Ballard will play a pivotal role in expanding CPKC’s ambitious hydrogen locomotive program. This program demonstrates CPKC’s commitment to environmental responsibility and its forward-thinking approach to sustainable transportation solutions. The transition to hydrogen fuel cells represents a substantial step towards mitigating the environmental impact of freight rail operations.
“We are incredibly excited about this opportunity to further strengthen our strategic relationship with CPKC,” said Randy MacEwen, President and CEO of Ballard Power. “This collaboration is not just about decarbonizing CPKC’s locomotive fleet; it’s about actively participating in the broader electrification of freight rail across North America. This substantial order is a testament to CPKC’s confidence in hydrogen fuel cells as a long-term replacement for diesel engines, offering significant environmental benefits alongside advantages in range, refueling speed, payload capacity, and cold-weather performance.”
CPKC has been actively testing prototype diesel freight locomotives retrofitted with hydrogen fuel cells, hydrogen storage, and battery packs since 2022. The company currently operates three hydrogen locomotives, providing valuable real-world data and experience that informs the ongoing expansion of its hydrogen fuel cell initiative.
Ballard Power Systems’ vision is to provide clean and sustainable fuel cell power for a world striving towards a greener future. The company’s zero-emission PEM fuel cells are already making inroads into various sectors, powering applications including buses, commercial trucks, trains, marine vessels, and stationary power generation. This latest agreement with CPKC represents a significant milestone in Ballard’s mission and a powerful step forward for sustainable freight transportation in North America.
