In 2024, renewable fuels represented close to 10% of all fuel used in our locomotives across CN's North American network. A first for our company.

Renewable fuels, such as biodiesel and renewable diesel, are produced from a variety of renewable sources, including vegetable oils (canola and soybean), used cooking oil, and animal by-products. Compared to traditional fossil fuels, they help reduce greenhouse gas (GHG) emissions over their entire lifecycle from production to use, enabling a more sustainable way to power our operations.

In addition to reducing GHG emissions, renewable fuels also have the potential to improve air quality, especially in and around railyards. Combined with our industry-leading fuel efficiency, renewable fuels are helping us move towards our net-zero target by 2050 through commitment, innovation, and collaboration.

 

Procurement with Purpose: Why 10% Matters

Moving long-haul freight by train instead of truck can reduce GHG emissions by up to 75%. Yet the transportation sector remains a significant contributor to emissions, and railroads, while more fuel efficient than trucks, are no exception. CN consumed approximately 1.5 billion litres (400 million U.S. gallons) of locomotive fuel in 2024, making our fuel strategy central to our sustainability commitments. With rail operations making up the majority of CN’s direct GHG emissions, nearing 10% renewable fuel use marks an important step in reducing our emissions while maintaining reliable service. This achievement, publicly reported in our latest circular Resilient and Ready, reflects our progress and the growing role of cleaner fuels in our operations.

Sourcing renewable diesel and biodiesel at scale—while maintaining operational reliability—requires more than strategy. It demands strong, forward-looking supplier relationships and a shared focus on taking action to reduce the environmental impact of transportation services. CN consumes approximately 15% less locomotive fuel per gross ton-mile than the average of North American Class I railroads. The result: key differentiators for our customers that amplify the impact of our renewable fuel initiatives and reinforce our role in driving efficient, lower-carbon freight transportation.

A Network of Aligned Partners

Progressing towards 10% renewable fuel in 2024 is a collective achievement. We partnered with key players across the value chain, from fuel producers to locomotive manufacturers, to bring this to fruition:

• Locomotive manufacturers like Wabtec and Progress Rail helped test and validate the use of renewable fuel blends.
• Fuel producer Chevron Renewable Energy Group contributed to cold-weather trials of biodiesel and renewable diesel, critical for scaling across CN’s northern operations.
• Class I railroad Union Pacific joined forces with CN in industry-wide trials to advance standardization and accelerate the use of renewable fuels.

Delivering Responsibly with Clear Objectives

CN is committed to reduce GHG emissions through science-based targets. We are seeking a 43% reduction in Scope 1 and 2 GHG emissions intensity by 2030 from a 2019 base year, and net-zero GHG emissions by 2050. To get there, we’re:

• Renewing our fleet with more efficient locomotives
• Using innovative technologies and advanced data for fuel optimization
• Promoting fuel conservation best practices
• Increasing our use of renewable fuels

Achieving close to 10% renewable fuel blend for our rail operations in 2024 is a testament that delivering responsibly is possible with clear objectives and strong partnerships.

There is more to come. For example, we launched a new medium-horsepower hybrid locomotive pilot project in 2025 to evaluate the potential for further emissions reductions. This hybrid model is designed for yard and short-haul service and will allow us to test how battery-assisted propulsion can complement our broader renewable and efficient fuel strategy.

To meet the growing demand for lower-carbon transportation, we must continue building relationships across the industry.

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