By Glenn Johnson


Keyera Corp. and Canadian National Railway Co. will explore creating a clean energy terminal in Alberta, Canada.

The two companies said Wednesday they have signed a memorandum of understanding to support transportation of green energy products from multiple sources. No financial details of the potential investment were included.

The Canadian companies are looking to develop a high capacity facility on adjoining lands belonging to Keyera and Canadian National and close to large industrial operators. The facility would be capable of handling six high-capacity trains daily in Alberta's Industrial Heartland, the companies said.

Canadian National has previously estimated that using rail networks has the potential to reduce carbon emissions by up to 75% over shipping heavy freight by trucks.

The Alberta government has legislated plans to increase the amount of green energy produced in the province by 30% by 2030.

"The project will offer a unique opportunity to aggregate products from multiple producers and will provide an efficient mechanism to not only support Canadian industry but also further global energy transitions," said Canadian National Chief Executive Officer Tracy Robinson.

The railroad company currently transports more than 300 million tons of natural resources annually, including manufactured products and finished goods across North America through an 18,600-mile rail network.

Keyera operates a Canadian-based energy infrastructure business consisting of natural gas and other fuels in the Edmonton/Fort Saskatchewan area of Alberta.


Write to Glenn Johnson at Glenn.Johnson@WSJ.com


(END) Dow Jones Newswires

08-17-22 0845ET