Union Pacific Corp (NYSE: UNP) plans to purchase 20 battery-electric locomotives for testing in yard operations. The company expects the combined purchases and upgrades to yard infrastructure to exceed $100 million.
Union Pacific anticipates the first units to arrive on-site in late 2023, with complete delivery by late 2024. The locomotives will be used in rail yards in California and Nebraska.
Union Pacific Railroad has ordered 10 FLXdrive battery-electric locomotives from Wabtec. The ~2.5-MWh locomotives are powered solely by 7,000 battery cells, providing Union Pacific with a zero-emission solution for its yard operations.
The 10 FLXdrives will enable the railroad to eliminate 4,000 tons of carbon annually from its rail yards. Wabtec will manufacture the new locomotives in the U.S.
Caterpillar will manufacture the locomotives under this order in Muncie, Indiana.
Price Action: UNP shares are trading lower by 0.23% at $244.03, WAB by 0.24% at $87.10, and CAT down by 6.16% at $199.12 on the last check Friday.
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