Canadian Pacific Kansas City Limited (CPKC) announced it had signed a long-term rail agreement with Teck Coal Limited in a deal that will see the two sides transport steel-making coal from Teck’s four operations located in southeastern British Columbia across Canada. The deal runs through the end of 2026.

CPKC and Teck will develop a pilot program that integrates CPKC’s hydrogen locomotives into Teck’s steel-making coal supply chain. The companies said testing for the program will begin in early 2024, and the two sides will work together to bolster the resiliency of the Canadian supply chain via investments in infrastructure and technology.

“This collaboration with CPKC to pioneer hydrogen locomotive technology supports our climate action strategy and our objective of achieving net zero by 2050,” said Jonathan Price, CEO of Teck. “The agreement complements our Neptune Terminals investment and other secured West Coast port capacity to support the efficient movement of our high-quality Canadian steel-making coal to our global customers.”