April 30, 2007 14:30 ET

CN pursues alternative fuels growth strategy

MONTREAL, QUEBEC--(CCNMatthews - April 30, 2007) - CN announced today its alternative fuels strategy focused on generating new business from the transportation of ethanol and ethanol feedstock, wood pellets, and biodiesel fuel.

James Foote, CN's executive vice-president, Sales and Marketing, said: "Industries and consumers throughout North America and overseas are increasingly looking to alternative fuels to reduce energy costs, fuel-related emissions and greenhouse gases."

Foote said CN's geographic franchise in Canada and the United States is particularly well positioned to take advantage of growing markets for:


CN's rail network has extensive access to the U.S. Midwest Corn Belt, source of much of the ethanol produced in the United States. From the Midwest, CN also offers corn farmers direct access to ethanol producers in Ontario, while in Western Canada CN is positioned to transport wheat for use as feedstock for ethanol production.

More than 30 per cent of gasoline in the U.S. is blended with ethanol, with the blended product used in 28 states. In Eastern Canada, the Ontario government on Jan. 1, 2007, mandated a five per cent blend of ethanol with gasoline.

Wood Pellets

Major power plants in North America, Europe and Asia are turning to wood pellets as an alternative to fuel oil, gas or electricity to heat homes. CN's North American network and direct access to export terminals on the Pacific, Atlantic and Gulf coasts position the company perfectly to serve growing markets for wood pellets, which do not contribute to global warming because they emit the lowest greenhouse gases of any fuel burned. In addition, because wood pellets are made from scrap wood, they are a natural fuel that is completely recycled.


Biodiesel is a clean burning fuel produced from renewable resources such as vegetable oil, animal fats or waste greases, and in its pure form is commonly blended with petroleum diesel or heating oil, resulting in an alternative fuel that is biodegradable, non-toxic and essentially free of sulphur and aromatics. CN serves two biodiesel facilities in Iowa and will serve further facilities that are planned for development in the U.S. Midwest.

This news release contains forward-looking statements. CN cautions that, by their nature, forward-looking statements involve risk and uncertainties, including the assumption that, while CN expects a moderate slowdown in the North American economy in the near term, positive economic conditions in North America and globally will continue, and that its results could differ materially from those expressed or implied in such statements. Important factors that could cause such differences include, but are not limited to, industry competition, legislative and/or regulatory developments, compliance with environmental laws and regulations, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, the effects of adverse general economic and business conditions, inflation, currency fluctuations, changes in fuel prices, labour disruptions, environmental claims, investigations or proceedings, other types of claims and litigation, 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 CN's most recent Form 40-F filed with the United States Securities and Exchange Commission, its Annual Information Form filed with the Canadian securities regulators, and its 2006 Annual Consolidated Financial Statements and Notes thereto and Management's Discussion and Analysis (MD&A), for a summary of major risks.

CN -- Canadian National Railway Company -- 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 cities 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.

Contact Information

  • CN
    Mark Hallman (Media)
    System Director, Media Relations
    (905) 669-3384
    Robert Noorigian (Investment Community)
    Vice-President, Investor Relations
    (514) 399-0052