09:09 AM EST, 01/16/2025 (MT Newswires) -- CN announced Thursday the launch of its new medium horsepower hybrid electric locomotive developed in collaboration with Knoxville Locomotive Works (KLW).

According to a statement, this hybrid locomotive will undergo testing in various operational conditions across CN's network as a pilot project, to "evaluate its potential to enhance operational efficiency and fuel savings, marking another step towards more modern and sustainable rail operations".

Thursday's statement noted the 3,200 medium horsepower hybrid unit is built on the traditional CN low horsepower locomotive operating in yards and branch lines. It includes a modern control system, increased horsepower of up to 60%, powered by a 2.4MWh-700HP battery-diesel engine, that is 100% biofuel ready. The hybrid system targets up to approximately 50% reduction in fuel consumption compared to a typical locomotive used in similar operations today.

CN said it expects this initiative will help drive the advancement of hybrid technology in locomotives and contribute to immediate emissions reductions.

The hybrid locomotive, CN added, will be deployed in phases over the next six months across several yards and branch lines, including locations in Tennessee, Mississippi, and Louisiana. Testing will also eventually include operations in cold weather conditions in Western Canada. "This phased approach will enable CN to evaluate efficiency and operating protocols for the locomotive. This project is part of CN's program to meet the deep decarbonization required to achieve net-zero emissions, with the other previously announced locomotive pilots."

CNR rose $0.41 to $144.32 on the TSX yesterday.