Hydrogen train: A step-up from diesel-powered trains

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  Quantumrun Foresight
• January 7, 2022

Insight summary

As transport planners envision future rail networks, they are shifting towards fuel cell-powered trains known as hydrail, combining hydrogen fuel cells, batteries, and electric traction motors. Electric batteries are the most cost-effective option for regional trains, while hydrogen outshines other fuels over longer distances. With the potential to replace diesel engines, hydrogen trains offer wider implications, including reduced maintenance costs, increased job opportunities, enhanced social inclusion, and advancements in hydrogen technologies, driving innovation and a hydrogen-based economy.

Hydrogen train context

As transport planners strategize next-generation rail networks, most are looking beyond present-day diesel-powered trains toward ones powered by fuel cell batteries. Hydrail combines hydrogen fuel cells, batteries, and electric traction motors in a hybrid arrangement. First, hydrogen is used as a fuel source. Next, the hydrogen is converted into energy by the fuel cells, which are then fed into the batteries, providing a stable power supply for a train’s motor drive.

According to energy research company BloombergNEF, the cheapest option for a regional passenger train owner is to use electric batteries, followed by diesel, hydrogen, and finally electric lines. These electric battery trains will be 30 percent more expensive but need minor servicing and maintenance as compared to diesel trains. The decision to replace diesel with batteries or fuel cells is determined by the distance of the tracks, the regularity of service, and the number of stops. Meanwhile, hydrogen has an advantage over other fuels across longer distances and in locations where greater power is required. 

Morgan Stanley analysts report that hydrogen trains have significant development potential in Europe. They forecast that the industry will be worth approximately USD $48 billion by the turn of the decade. By 2030, hydrogen-powered trains might account for one out of every ten trains that aren't currently electrified. 

Disruptive impact

Rail industry manufacturer Alstom estimates that more than 5,000 diesel-powered train lines in Europe will need to be retired by 2035. The company also claims that a fourth of all trains in the region run on fuel, which will be phased out by the middle of the century to fulfill climate objectives. The organization is currently analyzing how it compares to competing systems vying to replace diesel.

Similarly, the Canadian Pacific Railway said it would test a new hydrogen-powered train concept in the near future; the line-haul locomotive will be the first in North America once refitted with hydrogen fuel cells and modern battery technologies. Public subsidies and private investor capital for companies researching battery and hydrogen technologies for automobiles are also growing across European countries. The research output from these investments will ultimately be adopted within the rail industry, meaning that hydrogen trains will become an economical alternative to diesel on non-electrified routes by the 2030s.

The long-term goal is to completely replace diesel train engines in the rail sector. However, while it is true that hydrogen trains produce only water vapor while in operation, it does not mean hydrogen-powered trains are completely carbon neutral. Currently, prototype hydrogen-powered trains utilize "grey hydrogen," which is produced from natural gas and emits CO2 during the manufacturing process. That means for hydrogen or fuel-cell-powered trains to improve their environmental sustainability profile, these trains must use “green hydrogen” derived from renewable energy sources. 

Implications of hydrogen trains

Wider implications of hydrogen trains may include:

• The increased cost-effectiveness of rail transport due to lower maintenance and servicing requirements compared to diesel-powered trains.
• An increase in public rail usage for long-distance travel due to its lower carbon footprint relative to flying and personal transport options. 
• Increased job opportunities for rail planners, engineers, and track technicians, especially as rail networks across Europe and North America are due for refurbishment by the 2030s.
• Increased accessibility and convenience leading to improved mobility options for rural communities, reducing isolation and promoting social inclusion.
• New job opportunities in manufacturing, maintenance, and operation.
• Policies and regulations to ensure the safe production, storage, and distribution of hydrogen fuel, leading to increased collaboration between public and private sectors for effective implementation.
• Advancements in hydrogen production, storage, and distribution technologies, spurring innovation and fostering the growth of a hydrogen-based economy.

Questions to consider

• Do you think the interest in developing hydrogen trains would be better directed towards other forms of transport?
• Do you think hydrogen trains can be made carbon neutral?