"Ballard Power Systems (BLDP.TO)(BLDP) shares climbed in early trading Wednesday as investors embraced a deal with Canadian Pacific Railway (CP.TO)(CP) to use the company’s fuel cells in hydrogen-powered trains.
Components from Vancouver-based Ballard will deliver power to a locomotive converted from diesel, the two companies said in a news release after the closing bell on Tuesday. The fuel cells will work with batteries to power electric traction motors.
Once operational, CP Rail said it plans to test the technology’s readiness for hauling freight. The Calgary-headquartered company said the program represents “North America's first hydrogen-powered line-haul freight locomotive.”