CN tests natural gas/diesel fuel powered locomotives between Edmonton and Fort McMurray, Alta.

CN tests natural gas/diesel fuel powered locomotives between Edmonton and Fort
                               McMurray, Alta.

PR Newswire

EDMONTON, Sept. 27, 2012

EDMONTON, Sept. 27, 2012 /PRNewswire/ - CN (TSX: CNR) (NYSE: CNI) announced
today it is testing two mainline diesel-electric locomotives fuelled
principally by natural gas in revenue service in northern Alberta.

Keith Creel, executive vice-president and chief operating officer, said: "CN
launched this locomotive test to explore the use of natural gas as a potential
alternative to conventional diesel fuel. This reflects CN's continuing drive
to look for ways to improve operating efficiency and advance the company's
sustainability agenda.

"Natural gas has a lower carbon content compared with diesel fuel, so that
locomotives using natural gas - if the railway technology employing this form
of energy ultimately proves viable - would produce significantly fewer carbon
dioxide emissions."

CN retrofitted the diesel engines in two 3,000-horsepower Electro-Motive
Diesel (EMD, a subsidiary of Progress Rail Services, a Caterpillar Company
(NYSE: CAT)) -- SD40-2 locomotives to run on natural gas using conversion kits
supplied by Energy Conversions Inc. (ECI) of Tacoma, Wash. ECI says the hybrid
fuel locomotive will reduce carbon dioxide emissions by 30 per cent and
nitrogen oxide emissions by 70 per cent over a locomotive duty cycle. Click on
here to view the locomotive set.

The retrofitted locomotives, using 90 per cent natural gas, with 10 per cent
diesel fuel for ignition, are paired with a natural gas fuel tender, or
specially equipped and protected tank car, between them. The tender was
upgraded by a unit of Chart Industries, Inc., (NASDAQ: GTLS), located in New
Prague, Minn. Natural gas fueling is being provided by Encana Corporation
(TSX: ECA) (NYSE: ECA).

The natural gas fuelled locomotives are testing on the 300-mile run north of
Edmonton to Fort McMurray, rail gateway to the oil sands region of northern
Alberta. Fueling and maintenance take place in Edmonton.

CN is also working with EMD, Westport Innovations Inc. (TSX: WPT) (NASDAQ:
WPRT) and Gaz Métro Transport Solutions (GMTS), a wholly owned subsidiary of
Gaz Métro, on a longer term project to explore a state-of-the-art natural gas
railway engine and a standardized railway tender.

CN will provide two 4,300-horsepower SD70M-2 EMD locomotives for the test
program. EMD, in addition to the engine conversion, will supply technical
expertise to integrate the natural gas engine, related components and controls
into the locomotive, including Westport™ high-pressure direct injection (HPDI)
technology and natural gas fuel system technologies. GMTS will develop natural
gas liquefaction requirements and distribution systems. An innovative natural
gas tender for this initiative will be jointly developed by the project
partners.

The CN-led group expects to conduct engine laboratory tests in 2013 and to
roll out the prototype main-line locomotives for road tests in 2014.

As part of the project, Westport secured a funding commitment of C$2.3 million
from the Canadian government's Sustainable Development Technology Canada
program to develop the HPDI technology for high-horsepower applications.

CN leads the North American rail industry in fuel efficiency, consuming close
to 15 per cent less fuel per gross-ton-mile overall than the industry average.
CN's lower fuel consumption results in significantly fewer greenhouse gas
emissions.

CN - Canadian National Railway Company and its operating railway subsidiaries
- spans Canada and mid-America, from the Atlantic and Pacific oceans to the
Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal,
Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of
Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay,
Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with
connections to all points in North America. For more information on CN, visit
the company's website at www.cn.ca.

Forward-Looking Statements

Certain information included in this news release constitutes "forward-looking
statements" within  the  meaning  of  the  United  States  Private  Securities 
Litigation Reform Act of 1995 and under Canadian securities laws. CN  cautions 
that,  by  their  nature,  these  forward-looking  statements  involve  risks, 
uncertainties and assumptions. The Company  cautions that its assumptions  may 
not materialize and that current economic conditions render such  assumptions, 
although  reasonable  at  the  time   they  were  made,  subject  to   greater 
uncertainty. Such  forward-looking statements  are  not guarantees  of  future 
performance and  involve  known and  unknown  risks, uncertainties  and  other 
factors which may cause  the actual results or  performance of the Company  or 
the rail industry to  be materially different from  the outlook or any  future 
results or performance implied by such statements.

Important risk  factors  that  could  affect  the  forward-looking  statements 
include, but are not limited to, the effects of general economic and  business 
conditions,  industry  competition,  inflation,  currency  and  interest  rate 
fluctuations,  changes   in  fuel   prices,  legislative   and/or   regulatory 
developments, compliance with environmental  laws and regulations, actions  by 
regulators, various events which  could disrupt operations, including  natural 
events such  as  severe  weather,  droughts,  floods  and  earthquakes,  labor 
negotiations  and   disruptions,   environmental  claims,   uncertainties   of 
investigations, proceedings or other types of claims and litigation, risks and
liabilities arising from derailments,  and other risks  detailed from time  to 
time in  reports filed  by CN  with securities  regulators in  Canada and  the 
United States.  Reference  should  be made  to  "Management's  Discussion  and 
Analysis" in CN's annual and interim reports, Annual Information Form and Form
40-F filed with  Canadian and  U.S. securities regulators,  available on  CN's 
website, for a summary of major risks.

CN assumes no  obligation to  update or revise  forward-looking statements  to 
reflect future events, changes in circumstances, or changes in beliefs, unless
required by applicable Canadian securities laws.  In the event CN does  update 
any forward-looking statement, no inference should  be made that CN will  make 
additional updates  with respect  to that  statement, related  maters, or  any 
other forward-looking statement.

SOURCE CN

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