Ballard Power Systems (NASDAQ and TSX: BLDP) was at last look up 2.7% in US premarket trade as it signed Thursday a new Long Term Supply Agreement with Canadian Pacific Kansas City (CP.TO and NYSE: CP), including the initial supply of 98 fuel cell engines for use in the North American freight rail market. No financial details were provided
A statement noted each engine has a nameplate of 200 kW, totaling approximately 20 megawatts (MW) of fuel cell power. It said deliveries of all 98 engines are expected in 2025.
Thursday's statement noted 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.
The statement noted 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.
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