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On June 11, locomotive builder RailPower Technologies Corp. announced plans to raise $2.2 million by issuing 1.5 million private-placement units. Each unit would entitle the holder to one common share and one common-share purchase warrant, subject to a four-month hold period.


"These proceeds will allow us to continue, on schedule, with
commercialization of our hybrid products and, in particular, to fund the
building of initial production Green Kid™ locomotives," said RailPower President and Chief Executive Officer Jim Maier in a prepared statement.


An initial pre-production Green Kid is being tested by Southern Railway of British Columbia Ltd. in New Westminster, B.C.


Designed to produce up to 1,000 horsepower, the hybrid locomotive is targeted at smaller rail-yard operations in ports, grain terminals, petrochemical plants and other industrial facilities.


RailPower also plans to produce the larger, 2,000-horsepower Green Goat™ hybrid locomotive. At June's end, Union Pacific Railroad expects to conclude a Green Goat test in Chicago; in mid-July, Pacific Harbor Line Inc. is scheduled to begin a 30-day Green Goat test in Los Angeles.


Both models feature a small diesel generator and long-life battery bank designed to reduce locomotive emissions between 80 percent and 90 percent, and cut fuel consumption about 50 percent compared with conventional diesel-engine locomotives, RailPower said.