Rail industry considers fuel options beyond diesel

Railways are essential to the transportation of a wide variety of goods at efficient prices, offering cost-per-ton-mile of freight pricing and one of the lowest carbon emissions other modals typically can’t match. Rail accounts for 40% or more of the U.S. long-distance freight volume, which is more than any other mode of transportation.

The rail industry has been working toward lowering its carbon intensity for decades; reducing overall fuel consumption has been a long-term focus and progress has been made. One train can move one ton nearly 500 miles on one gallon of fuel — that is seen as one of the most efficient fuel use in the transportation industry.

As lower carbon intensity fuels continue to develop their place in the market, there are four key pillars experts in the rail industry consider as they integrate renewable fuel options into their portfolio.

Pillar 1: Fleet adoption and technology scalability

Protecting the locomotive engine is of utmost importance to rail operations, as it is a major investment. When properly cared for and maintained, a new locomotive can have a useful life of around 30 years. Rail leaders need to confidently know that biofuels will not have negative impacts on the engine.

Union Pacific (UP) has been gradually integrating biofuels in their fuel portfolio. UP has increased their use from 4.5% integration in 2022 to 6.1% in 2023. UP plans to continue their investment in lower carbon fuel solutions.

Pillar 2: Infrastructure readiness

As the rail industry steadily increases its focus on lowering carbon emissions, renewable diesel and biodiesel blends are direct replacement solutions available today across the fueling networks that can be used within existing fueling infrastructure with minimal modification if necessary.

Evaluating if an operation’s existing systems can store, blend and distribute lower carbon intensity fuels is essential to a seamless transition.

Pillar 3: Economic viability

One hundred percent biodiesel (B100) can provide up to 74% reduction in greenhouse gases when compared to petroleum diesel and can be purchased from existing fuel procurement processes and terminals across the country. Lower carbon intensity fuels are the lowest cost alternative when compared to other ways of reducing carbon emissions, such as electrification.

Electrification is currently not seen as a viable option for rail freight linehaul operations due to infrastructure, technology and cost barriers. The Association of American Railroads (AAR) estimates replacing over 24,000 Class I locomotives to accommodate electrification systems alone would be close to $100 billion due in part to the extremely demanding requirements of heavy long-haul freight equipment.

Railroads differ from fleets and airlines in that they own and manage tracks, meaning the costs to electrify infrastructure would be the responsibility of the railway companies themselves. Electrification of the nation’s freight network require building and maintaining a high-voltage catenary system that spans close to 140,000 miles and is estimated to be hundreds of billions of dollars to replace — far beyond what rail companies likely would be able to pay. A project of this size would require entirely new power plants where existing electrical supply is inadequate.

Biomass-based diesel solutions are ready for use now — biodiesel and renewable diesel are the only lower carbon intensity diesel fuel direct-replacement fuel solutions that are available today, with typically no significant engine upgrades needed. As customers look to shipping partners to start or progress their goals, lower carbon intensity fuels offer a timely solution.

Pillar 4: Operational integration

Renewable diesel and biodiesel can be adopted in existing fleets with minimal changes to technology, operations, and workforce training. Lower carbon intensity fuels do not create additional downtime, like recharging an electric locomotive or increasing the available energy to complete a freight route might.

In addition to lower carbon intensity scores compared to petroleum diesel, the high-quality renewable fuel blends from Chevron also has benefits for engine performance:

• Enhanced lubricity, which may help engines run smoother, cooler and quieter
• Lower particulate matter, which may help reduce diesel particular filter clogging and regeneration in turn which has the potential to improve local air quality
• Stringent standards that exceed ASTM, CEN and CGSB quality requirements
• When compared to traditional petroleum fuels, safety advantages in terms of combustibility and potential effect on the environment in the event of a spillage of biodiesel or renewable diesel

An eye on policy

Educating policymakers of the potential for use in the rail industry and the associated benefits are top of mind. These fuels not only have a lower carbon intensity than traditional fuels, but can be cost-effective for companies due to the market-based credit system.

As the rail industry plans its investments for operations to reduce carbon intensity, the future is bright with the possibility of lower carbon intensity fuels integration. For more information on lower carbon intensity fuels specific to rail companies, go to the source and connect with a Chevron expert today.