Canadian Pacific Kansas City and CSX Corporation announced their intent to enter a joint venture for the building and deployment of H₂ 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 H₂ conversion kit developed by CPKC. The conversion work will be done at CSX’s Huntington, West Virginia locomotive shop.

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 (CP) announced plans to develop a line-haul H₂-powered locomotive in North America by retrofitting a diesel freight locomotive with H₂ 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.

CPKC has deployed a second H₂ 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 H₂ locomotive is expected to enter service later in 2023.