Canadian railways have been busy amidst the pandemic, as record levels of grain were transported across the country in 2020.
According to a CP Rail news release, the company moved a total of 31.3 million metric tons (MMT) of grain and grain products across Canada in 2020, surpassing any previous year on record. Not only did CP Rail set a new annual record, though, the company also exceeded its prior quarterly record by 5.1%, transporting a total of 8.84 MMT of various Canadian grain products across the country. The month of December also helped end 2020 off on a strong note for the railway company, with a haul of 2.84 MMT, also a new record.
To coincide with the increasing levels of grain transportation, CP Rail has also decided to develop the first hydrogen-powered freight locomotive in North America, as a means of meeting evolving climate change initiatives. At the beginning of December, the company revealed that it will be modifying one of its locomotives with hydrogen fuel cells and battery technology to power its electric traction motors. The hydrogen-powered locomotive will then be subject to numerous tests and rail trials that will analyze whether or not the technology is compatible with the freight-rail sector.
The use of hydrogen for electricity production, heating, and transportation has been increasingly viewed as a possible substitute for fossil fuels. As a number of countries look for new methods to meet their climate targets, Canada has recently introduced a federal hydrogen plan that will put the country at the forefront of global suppliers of zero-emission fuels, while meeting its own goal of net-zero emissions by 2050.
Information for this briefing was found via CP Rail. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
