Chevron U.S.A. Inc., a subsidiary of Chevron Corp. and Caterpillar Inc. have announced a collaboration agreement to develop hydrogen demonstration projects in transportation and stationary power applications, including prime power.

The goal of the collaboration is to confirm the feasibility and performance of hydrogen for use as a commercially viable alternative to traditional fuels for line-haul rail and marine vessels. The collaboration also seeks to demonstrate hydrogen’s use in prime power. Linked to the collaboration and facilitated by Progress Rail, a Caterpillar company, the parties also agreed to demonstrate a hydrogen-fueled locomotive and associated hydrogen-fueling infrastructure. Work on the rail demonstration will begin immediately at various locations across the U.S.

“Through Chevron New Energies, Chevron is pursuing opportunities to create demand for hydrogen—and the technologies needed for its use—for the heavy-duty transportation and industrial sectors, in which carbon emissions are harder to abate,” said Jeff Gustavson, president of Chevron New Energies. “Our collaboration with Caterpillar is another important step toward advancing a commercially viable hydrogen economy.”

“As we work to provide customers with the capability to use their desired fuel type in their operations, collaborating with Chevron is a great opportunity to demonstrate the viability of hydrogen as a fuel source,” said Joe Creed, Caterpillar group president of Energy & Transportation. “This agreement supports our commitment to investing in new products, technologies and services to help our customers achieve their climate-related objectives as they build a better, more sustainable world.”