Union Pacific buys battery locomotives
Company wants to move away from diesel
Union Pacific Corp (NYSE:UNP) plans to purchase 10 battery locomotives from Caterpillar Inc (NYSE:CAT), Caterpillar CFO Andrew Bonfield said in an interview on Friday.
The deal, which had not been previously announced, comes at a time when customers of the world's largest construction and mining equipment are looking to reduce their carbon emissions by reducing their reliance on gas and diesel for transportation. It wasn't immediately clear what the value of the deal was.
Union Pacific is moving away from diesel fuel to meet stricter US emissions standards.
"We have other transactions in the transportation space around locomotives," Bonfield said in an interview on Caterpillar's findings.
"All these (sustainability) efforts help other parts of our business."
Caterpillar CEO Jim Umpleby said during the company's earnings press conference that Union Pacific, the largest US rail operator by market value, is the fourth customer for Caterpillar's battery electric locomotive technology.
On Wednesday, Canadian mining company Teck Resources (NYSE:TECK) Ltd said it is deploying 30 zero-emission Caterpillar large transport vehicles to become carbon neutral by 2050.