Canadian Pacific Kansas City and CSX are working together to build and deploy hydrogen locomotive conversion kits that will be used for diesel electric locomotives.

The two have formed a joint venture in which CSX (NASDAQ: CSX) will use one of CPKC's (NYSE: CP) kits to convert a diesel locomotive as a kickoff to the collaboration. CSX will convert the locomotive at CSX's locomotive shop in Huntington, West Virginia.

"CSX looks forward to working as a partner with CPKC in the development of the hydrogen locomotive program as it demonstrates our commitment to implementing alternative fuel solutions that could further enhance our emissions performance and offer our customers an even more environmentally-friendly transportation solution," CSX President and CEO Joe Hinrichs said in the news release. "This exciting initiative will greatly benefit from the expertise of CSX's advanced, large-scale facilities, where the locomotives will be built."

The freight rail industry, including the Class I railroads, have been working to develop greener locomotive technologies, such as hydrogen-powered locomotives and locomotives that run on biodiesel, as part of a wider effort to reduce greenhouse gas emissions.