Mr. Keith Creel reports

CPKC AND CSX ANNOUNCE PLANNED COLLABORATION TO DEVELOP ADDITIONAL HYDROGEN LOCOMOTIVES

Canadian Pacific Kansas City Ltd. and CSX Corp. intend to enter into a joint venture for the building and deployment of hydrogen locomotive conversion kits for diesel electric locomotives.

As an initial step in the collaboration, CSX plans to convert one of its diesel locomotives using a hydrogen conversion kit developed by Canadian Pacific. The conversion work will be done at CSX's Huntington, W. Va., locomotive shop.

"This innovative collaboration expands our hydrogen locomotive program beyond a single railroad and represents an exciting next step in proving the long-term viability of hydrogen as a solution to emissions reduction for our industry," said Keith Creel, Canadian Pacific president and chief executive officer. "Our hydrogen locomotive went from concept to reality in 24 months with the first zero emissions hydrogen locomotive having already pulled freight in revenue service. We look forward to this collaboration as we work to create a lower carbon future."

"CSX looks forward to working as a partner with CPKC in the development of the hydrogen locomotive program as it demonstrates our commitment to implementing alternative fuel solutions that could further enhance our emissions performance and offer our customers an even more environmentally friendly transportation solution," said Joe Hinrichs, CSX president and chief executive officer. "This exciting initiative will greatly benefit from the expertise of CSX's advanced, large-scale facilities, where the locomotives will be built."

Nearly the entire freight locomotive fleet of all railway operators in North America consists of diesel-powered units, representing the industry's most significant source of greenhouse gas emissions. Rail has an important role to play in a lower-carbon economy and the industry needs a long-term, effective alternative fuel solution.

In December, 2020, Canadian Pacific announced plans to develop North America's first line-haul hydrogen-powered locomotive by retrofitting a diesel freight locomotive with hydrogen fuel cells and battery technology to drive the locomotive's electric traction motors. The prototype, designed and built by in-house CP engineers, made its first movement under its own power in late 2021. By the end of 2022, the locomotive had made its first revenue moves and now has accumulated more than 1,000 miles of testing in revenue service.

Canadian Pacific has deployed a second hydrogen locomotive for testing in terminal operations, a program expansion supported by funding awarded by Emissions Reduction Alberta and the government of Canada Low Carbon Economy Fund. The second hydrogen locomotive is expected to enter service later in 2023.

About Canadian Pacific Kansas City Ltd.

With its global headquarters in Calgary, Alta., Canada, Canadian Pacific is the first and only single-line transnational railway linking Canada, the United States and Mexico, with unrivalled access to major ports from Vancouver to Atlantic Canada to the Gulf of Mexico to Lazaro Cardenas, Mexico.

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