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Yesterday, CN announced it's testing two mainline diesel-electric locomotives in revenue service in northern Alberta that primarily are fueled by natural gas.

The Class I retrofitted diesel engines in two 3,000-horsepower, Electro-Motive Diesel (EMD) SD40-2 locomotives to run on natural gas, using conversion kits supplied by Energy Conversions Inc. (ECI). The hybrid-fuel locomotive can reduce carbon dioxide emissions by 30 percent and cut nitrogen oxide emissions by 70 percent over a locomotive duty cycle, according to ECI.

The retrofitted locomotives use 90 percent natural gas and 10 percent diesel fuel for ignition, and are paired with a natural gas fuel tender between them.

"Natural gas has a lower carbon content compared with diesel fuel, so that locomotives using natural gas — if the railway technology employing this form of energy ultimately proves viable — would produce significantly fewer carbon dioxide emissions," said Keith Creel, CN's executive vice president and chief operating officer, in a prepared statement.

The locomotives are being tested on a 300-mile run north of Edmonton to Fort McMurray. Fueling and maintenance tasks are performed in Edmonton.

CN is also working with EMD, Westport Innovations Inc. and Gaz Métro Transport Solutions on a longer-term project to explore a state-of-the-art natural gas rail engine and a standardized rail tender.

CN will provide two 4,300-horsepower, SD70M-2 EMD locomotives for the test program. EMD will convert the engines and supply technical expertise to integrate the natural gas engine, related components and controls into the locomotive, including Westport's high-pressure direct injection technology and natural gas fuel system technologies. Gaz Métro will develop natural gas liquefaction requirements and distribution systems, while the partners will jointly develop a natural gas tender for the initiative.

The CN-led group expects to conduct engine lab tests in 2013 and roll out a prototype mainline locomotive for road tests in 2014.