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Canadian Pacific (CP) to Build Train Powered by Hydrogen

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In a bid to decarbonize the freight transport, Canadian Pacific Railway Limited (CP - Free Report) announced that it intends to pilot a project for building a hydrogen-powered train. This Canadian railroad operator aims to make use of its Hydrogen Locomotive Program to retrofit a line-haul locomotive with hydrogen fuel cells and battery technology to drive the train’s electric traction motors. 

Per the company’s press release, the retrofitted line-haul locomotive will be the first of its kind in North America.  Once functional, Canadian Pacific will conduct rail service trials and qualification testing to ascertain how far the hydrogen technology is ready to serve the freight-rail sector.

President and CEO Keith Creel stated: "This is a globally significant project that positions CP at the leading edge of decarbonizing the freight transportation sector”.

Notably, Canadian Pacific is highly experienced in the field of testing low-emission locomotive technologies including biofuels, natural gas and battery-powered solutions. Evidently, the company made an improvement in delivering locomotive fuel efficiency in excess of 40% since 1990 through various efforts to better fuel economy and cut down on air emissions.

As a matter of fact, almost the entire fleet of railway operators in North America uses diesel power.

Zacks Rank & Key Picks

Canadian Pacific currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report)  and Herc Holdings Inc. (HRI - Free Report) . Both Landstar and Knight-Swift carry a Zacks Rank #2 (Buy) while Herc Holdings sports a Zacks Rank #1 (Strong Buy), presently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.

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