ATCO/CPKC Hydrogen Fuelling

The key here is the line: “retrofitting a number of diesel locomotives”.

A number here means 3.

“CPKC currently has three hydrogen-powered locomotives in service.”

They are operational, but my understanding is that they are not standard operations.

We are talking about a test facility, not a fully operational program. The retrofits are for specific lines and to test whether it is functional and what the costs are.

This doesn’t mean that we should allow it to exist without our members doing the work.

ATCO is a large multinational energy company based in Alberta. The focus is natural gas and some renewable related to natural gas. It is organized by independent trade unions.

ATCO Heartland Hydrogen Hub (HH2H) is the main hydrogen generation program in Alberta.

The HH2H is a facility co-located with Suncor. It uses natural gas to produce the majority of its hydrogen.

However, the generation for CPKC may not be part of the Suncor partnership as ATCO has its own hydrogen plant near by using an electrolyzer powered partly by renewable energy:

refuelling facilities in Calgary and Edmonton, Alberta. The infrastructure at each Canada Pacific (CP) site includes a 1MW (megawatt) electrolyzer, compression, storage and dispensing for locomotive refuelling. In Calgary, the electrolyzer is powered in part by renewable electricity from CP’s existing solar power facility, co-located at CP’s headquarters

ATCO have received Canadian government funding, but have also received supports and procurement guarantees in the USA.

There is no question that ATCO receives significant funding from the government for its hydrogen projects and the Hydrogen Centre of Excellence, funded by the government, is co-located with ATCO’s facilities. However, it does not need government funding for specific projects that are likely commercially viable, such as this partnership with CPKC. ATCO has significant investments in both sides of the hydrogen system.

Hydrogen is one of the programs that the government of Canada and Alberta are funding heavily because it is supported by the oil and gas sector. The focus will be on it as a transition fuel and a fuel that allows for a “separation” from the oil and gas market.

If CPKC can produce the fuel it needs at low cost through electricity and/or natural gas derived hydrogen, then it can hedge against changes in price of diesel.

The question remains, is hydrogen the best option for these locomotives? I have my doubts about broad adoption because hydrogen is so difficult to deal with and there are cheaper alternatives.

These tests that CPKC and ATCO are doing about the financial viability of this product will be telling.