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CN, Wesport Innovations and Gaz Métro Transportation Solutions (GMTS) are working jointly to develop a liquefied natural gas (LNG) engine technology for locomotives. The parties will receive $2.4 million in funding from Sustainable Development Technology Canada to help fund development.

The initial stages of the project call for designing and testing — both in plant and in the field — an LNG system for powering a locomotive. GMTS will provide LNG expertise during the tests and be responsible for fuel supply logistics, while CN will provide locomotive expertise and conduct field tests. The partners expect a prototype of an LNG-powered locomotive to begin operating in 2013.

"This demonstration project is important for developing the natural gas market, a cleaner and less expensive fuel,” said GMTS General Manager Jean-Pierre Noël in a prepared statement.

The Canadian transportation sector is a significant source of greenhouse gas (GHG) emissions, according to Environment Canada.

“Given that fuel accounts for one-fifth of the rail industry's expenses, the potential advent of a cleaner and less expensive technology is very promising for reducing GHG production in Canada,” GMTS officials said.