Ballard Power Systems has signed a new Long Term Supply Agreement with Canadian Pacific Kansas City (CPKC) for 98 fuel cell engines, totaling approximately 20 megawatts (MW) of power. Each engine has a 200 kW capacity, with deliveries expected in 2025, marking a significant milestone in the decarbonization of freight rail transportation. This agreement builds upon their partnership started in 2021, which has already delivered about 10 MW of fuel cell engines. CPKC currently operates three hydrogen locomotives, with prototype testing ongoing since 2022. The new engines will support CPKC's expanding hydrogen locomotive program, focusing on switching and freight service applications in Alberta, Canada. The 20 MW follow-on order from CPKC represents one of the largest commercial deployments of hydrogen fuel cells in the rail sector. The successful integration of the initial 10 MW and expansion to operational hydrogen locomotives demonstrates technical validation and growing market confidence in hydrogen technology. This order could catalyze broader adoption in the North American freight rail market, traditionally reliant on diesel power. The order signifies a significant scaling up of CPKC's hydrogen program, with accelerated commercialization indicated by the 2025 delivery timeline. Ballard's securing of a major Class 1 railroad as a long-term customer validates their technology and positions them for potential future orders in the rail sector. The transition to hydrogen in rail could offer substantial recurring revenue through fuel cell engine sales and maintenance, potentially setting a new industry standard. Overall, this development signifies a positive step towards industry innovation and decarbonization in freight rail transportation.