The concept is based on extending the life of existing traction rather than procuring new hydrogen locomotives. HyOrc’s multi-fuel engine would initially operate on natural gas or LPG before moving to full onboard hydrogen. For UK freight operators, the proposal is framed as a decarbonisation option for non-electrified routes. No prizes for guessing that the target is reducing emissions from the dominant Class 66 fleet.

Retrofit model for international freight markets

HyOrc is developing hydrogen and multi-fuel retrofit programmes for railways in Europe and Asia, alongside its work in stationary power and waste-to-fuel systems. The company’s approach centres on replacing diesel prime movers with gas engines capable of operating on multiple fuels, allowing operators to transition incrementally rather than adopting hydrogen-only traction. This model is intended to reduce capital exposure while maintaining fleet availability during conversion. Although GBRf has already pioneered introducing modern bi-mode locomotives to the UK freight scene, it shares the industry reliance on diesel motive power – particularly the ageing but still viable Class 66 marque, originally developed in the 1990s and manufactured by the then EMD company in North America.

The proposed UK pilot would scale HyOrc’s one-megawatt factory system, independently assessed by Bureau Veritas (a long-established agency), to a three-megawatt locomotive installation. Project Phoenix would examine integration, performance and fuel storage, as well as the commercial case for retrofitting in a market dominated by ageing North American-designed locomotives. HyOrc argues that onboard hydrogen conditioning improves efficiency and reduces the cost penalty associated with compressed hydrogen supply.

Technical scope and staged fuel transition

Under the staged concept, converted locomotives would first operate on natural gas or LPG to deliver immediate emissions reductions. A later phase would introduce fully onboard hydrogen, once supply chains and infrastructure mature. The partners say this phased approach reduces technical risk compared with a single-step transition and allows operational learning before committing to full hydrogen deployment.

Testing would focus on route availability, range, refuelling logistics and maintenance requirements within UK loading gauge constraints. Safety certification for onboard gas and hydrogen storage will be a central element of the feasibility work. The study will also consider whether converted locomotives can match the duty cycles and tractive effort currently provided by diesel traction on heavy freight flows.

Fleet strategy and decarbonisation targets

The initiative sits alongside GB Railfreight’s introduction of Class 99 bi-mode locomotives, which draw primary power from overhead lines and use an HVO-ready diesel engine off-wire. “Project Phoenix aligns with GBRf’s strategic commitment to lead the rail freight sector towards a more sustainable future and could play a key role in delivering our carbon reduction plan,” said Alex Kirk, Commercial Director at GB Railfreight. “By retrofitting part of our existing fleet with multi-fuel technology, it will offer a practical, low-risk route to decarbonisation. It enables us to extend the value of current assets alongside the introduction of our new fleet of bi-mode Class 99s.”

For GBRf, the study addresses the continued reliance on Class 66 locomotives, which remain the mainstay of UK freight but do not meet modern emissions standards. Retrofitting a subset of these units could provide an interim pathway while electrification and alternative traction develop. The operator has consistently argued that network electrification alone will not deliver freight decarbonisation within the required timescales.

Funding pathway and next steps

HyOrc said it is exploring structured funding through the Connected Places Catapult accelerator programme, which supports demonstrator projects for low-carbon transport technologies. “Project Phoenix is a turning point for the rail industry,” said Lisa Carter, CFO of HyOrc. “By retrofitting existing assets, we allow operators to decarbonise immediately, bypassing billions in new fleet costs. We are exploring obtaining structured funding through the [Uk government backed] Connected Places Catapult Accelerator.”

As an MoU, the agreement establishes a framework for technical and commercial evaluation rather than a confirmed conversion. Any demonstrator will depend on funding, regulatory approval and a viable business case. If progressed, the project could test a retrofit model for reducing emissions from diesel-dominated freight fleets on routes where electrification remains unlikely in the medium term.

Hydrogen transportation could represent a significant new market for rail freight. Network Rail has conducted a test (Wednesday 3 December) at Network Rail’s Test Tracks site in Tuxford, Nottinghamshire, England. Freight operator Freightliner hauled a train of gas containers from Doncaster to High Marnham, marking Britain’s first shipment of hydrogen by rail.

Showcasing zero-carbon innovation

The trial run was part of a rail and energy industry innovation event showcasing several hydrogen initiatives. This included the first re-engineered hydrogen-powered shunting locomotive (switcher). Hydrogen is seen as a step towards replacing diesel fuel. It is a move towards the rail industry’s goal of becoming net zero. The event also demonstrated HPU (Hydrogen Power Unit), lighting towers and support vehicles.

Network Rail’s test track site at Tuxford runs east to High Marnham (about ten miles – 16km). It runs adjacent to HyMarnham Power, the UK’s largest green hydrogen production facility operated by GeoPura and JG Pears. The facility is built on the site of a former coal-fired power station. HyMarnham Power is one of the world’s first rail-connected hydrogen production facilities, and Network Rail’s Tuxford site will be the world’s first net-zero railway testing facility.

Building a hydrogen supply chain by rail

Similar developments in Europe have seen intermodal units developed to carry hydrogen by rail. A German company introduced their product just last week (see WorldCargoNews.com). For now, though, hydrogen is transported by road. The Network Rail tests are designed to prepare the network to become a ready-made hydrogen distribution system.

Network Rail has called it a rolling pipeline, with connections to all major industrial and urban centres across Britain. The trials will test the practical capability of rail to transport hydrogen at scale. Hydrogen will also be utilised to decarbonise wider rail operations, from construction to ongoing maintenance and off-grid operations.

Strategic role for rail in clean energy distribution

“Rail is the greenest form of long-distance transport,” said Leevan Finney, Network Rail’s engineering services director. “For 200 years, the railway has connected communities and major industry across Britain. Today, the railway has the potential to be a strategic hydrogen distribution network in the future, as it has been for energy for many years.

“By bringing together rail and energy innovators here at Test Tracks in Tuxford, we’re accelerating Britain’s journey to net zero and showing how rail and energy sectors can work together to deliver sustainable transport and energy distribution.”

Industry partnership for a net-zero future

“By supplying locally produced green hydrogen from HyMarnham Power to this first-of-its-kind rail application,” explained Finney, “we’re showing that clean fuel, proven technology and existing rail infrastructure work together right now to cut carbon and improve air quality across the network. GeoPura is delighted to support Network Rail and its partners as they show what the future of a net-zero railway looks like in practice.”

The event at the Test Tracks site in Tuxford was held in partnership with organisations across the rail and energy sectors, including Freightliner, HyMarnham Power, GeoPura, Vanguard Sustainable Transport Solutions, Enspired Consulting, Rail Operations Group, Toyota UK and JCB.

The development of the MEGC was funded by the German Ministry for Economic Affairs and Climate Action. The invested amount has not been publicly disclosed yet, but it comes from a 4,6-billion-euro package to improve hydrogen infrastructure. The new container will allow the monitoring of temperatures, pressure and vibration through special sensors. “At the end of the year, the container will then transport green hydrogen by rail for the first time as part of a pilot project”, DB Cargo concluded.

Robot inspectors

On the other side of China, in the north, robots are making their debut in the world of Chinese rail freight. They help in wagon inspections, with a success rate of 100% for “common faults”.

The robots are not replacing manual labour entirely, however. For now, the system combines robot inspections with manual verification and cloud-based diagnostics. It primarily helps in reducing human error and labour intensity. Over a 24-hour period, the robots can speed up wagon inspections by 30 minutes for 108 wagons. Robot systems are also already in use for high-speed passenger rolling stock, according to Chinese media.

Another Coolergy project in Riga

Since the end of 2024, Coolergy is also leading a project aimed at deploying hydrogen-powered shunting locomotives at the Freeport of Riga, in Latvia. Here, the company converted an old diesel-electric TGM4 locomotive to run on liquid hydrogen. This initiative, which also involves Estonian transport company Hanko Trans, will see 11 more units being converted by the end of this year.

Each of the locomotives will be equipped with four 80 kW Toyota fuel cells. In support of this project, Coolergy is also going to build a production and liquefaction plant with a capacity of two tonnes every day in Narva, near the Estonian border with Russia. The Latvian Energy and Transport Competence Centre ETKC is partly funding the conversion project with 500,000 euros.

Its carbon-free nature is hydrogen’s greatest advantage – making it a logical choice for organisations looking to reduce their carbon footprint. But is it viable for the rail freight sector? “That depends”, explains Stefan Bernsdorf. “Hydrogen is particularly attractive for non-electrified lines where overhead electrification is not feasible. It can help achieve a longer range than only battery-powered solutions, making it a viable option for routes where electrification is not possible.” Hydrogen can be used alongside an on-board battery, where a fuel cell acts as a range extender on a hybrid vehicle.

Vehicle range with hydrogen can vary by a factor of five

In principle, hydrogen can match the tractive performance of fuels such as diesel and HVO – but comes with a major drawback: its energy density is much lower. “This is just a hard rule of physics”, says Bernsdorf. “Diesel and HVO carry more energy relative to the volume.” This means that to cover the same distance, a hydrogen-powered train requires significantly more storage space. For freight trains that require a lot of energy, this is a major hurdle.

One of hydrogen’s advantages is that it potentially offers a larger range than battery-only solutions. But its range can, like with other fuels, vary considerably: “The range of hydrogen–powered trains depends on loading, the track profile, the number of stops and starts, among other things. It can also depend on the mood of the driver, and factors such as how efficiently they brake. The weather also has an impact on the energy required for a particular route”, says Bernsdorf. The range of a vehicle using hydrogen can differ by a factor of five, from the best to the worst case scenario.

The supply chain as a financial game changer

“When considering new operations, you need predictability for your business case. The prices of new fuels, like hydrogen, are more volatile than fossil fuel prices”, the Stadler sales manager for alternative traction solutions continues. Diesel has relatively stable pricing. “New fuels, including hydrogen, do not come with an established stable supply chain. A nucleus for a growing supply-and-demand ecosystem could be what is needed to establish supply chains and large scale production to secure economies of scale. We’ll see what the future brings.”

Stadler recognises that supply chain conditions are important. “With hydrogen’s lower energy density, a big part of the fuel cost is transport – you pay a lot for tanks and containers to carry the energy around”, says Bernsdorf. “Stadler is aware of some projects where hydrogen is close to the operator, improving the economic picture.”

Not the most obvious choice for freight

Hydrogen for freight: is it a yes, or a no? “Technically possible, but typically not the first option for consideration”, Bernsdorf concludes. “You need to look at the location, the environment, the weight, the loading, among other factors. Solutions can be wide-ranging. Hydrogen is an option to extend the range of a battery vehicle. We don’t have catenaries; so, what next? Then hydrogen might be an option.”

The high power requirements of freight push towards high energy density (liquid) fuels. “HVO is an intuitive solution to decarbonise rail freight on non-electrified lines”, says Bernsdorf. “Especially when combined with traction batteries to recuperate braking energy and increase efficiency. For lighter vehicles like short-distance commuter trains, battery or hydrogen is an ideal solution, and when feasible, battery-only tends to be the first choice. It is simple, cheaper, and more efficient, but not possible everywhere.”

The University of Genoa organised a roundtable on the topic of hydrogen applications on 24 February. Among the attendants was Flavio Tonelli, a professor on the topic of mechanical industrial plants, who commented: “It’s time for Liguria and Italy to clarify the potential and opportunities of using hydrogen. Probably a 360-degree use is not yet feasible in all industrial contexts, however there are niches, such as those of the port and logistics and rail transport, in which hydrogen can play an interesting role.”

With logistics hubs in Antwerp, Algeciras, Singapore and Houston, the company has customers in more than 100 countries. It employs around 90 staff, and its projected turnover for 2023 is 30 million euros.

Hydrogen and LNG logistics offering

Air Flow has expertise in hydrogen logistics services encompassing hydrogen tank supply, storage, transportation and maintenance. In turn, Modalis and its engineering office, Altech, focus on the specific constraints of hydrogen carriers such as ammonia, especially the related loading infrastructures and storage facilities.

Together, they plan to offer a full hydrogen logistics solution, from storage to distribution, incorporating advanced technologies to address long-haul transportation needs.

CO₂ capture logistics development

Carbon capture, storage and recovery are viewed as essential for decarbonisation, particularly in the absence of viable alternatives. Like hydrogen, these solutions are considered by the Intergovernmental Panel on Climate Change (IPCC) and the European Commission to be key in reducing emissions from heavy industry (cement, chemicals, steel) and other sectors (paper mills, waste incineration).

While pipeline transportation is preferred, logistics solutions, such as cryogenic rail transport to CO₂ export hubs, are a strategic area for the Modalis Group and with Air Flow, they will combine their expertise “to unlock new development prospects, covering the entire carbon capture logistics chain, with pilot projects already underway in Europe.”

Further expansion

With the acquisition of Air Flow, Modalis is eyeing a turnover of 100 million euros in 2024, most of which will be generated outside of France. Together, the two companies will offer equipment with a capacity of 6,000 TEUs for all types of transportation.

The Group plans to pursue its 120 million-euro investment programme to enhance its fleet and is considering further acquisitions in 2025.

The company started investing in battery-electric locomotives in May 2023, when it commissioned Progress Rail to retrofit one of its diesel-powered vehicles. The refurbished vehicle is expected to commence trials in 2025. It is estimated that it will have a range of 400 kilometres. By adding the set of batteries that is being developed with the new project, this range will thus more than double. Trials involving battery-electric locomotives plus the battery pack shall start by 2026, according to Aurizon.

Aurizon is open to using hydrogen

If embracing battery-electric locomotives is something the European Union shares, Aurizon is also willing to use hydrogen to replace traditional diesel fuel. The company has been working with Anglo American on a feasibility study to introduce hydrogen-powered trains for bulk freight. The two companies concluded that a combination of hydrogen and battery would be the preferred configuration due to limited hydrogen storage space on the locomotives. In Europe, however, hydrogen is not considered a significantly valid option due to its costs and the difficulties in transporting and storing it.

The meetings held with European partners also included the signing of an important agreement between Hyrasia One and Semurg Invest, owner and operator of the Sarzha Multifunctional Marine Terminal (Sarzha MMT) at the Kazakh Port of Kuryk. Their agreement foresees that the Kuryk port and its Sarzha MMT terminal are to become a green energy transport hub, with the plan being that hydrogen produced in Hyrasia One’s Kazakh industrial plant will find its way to Europe and other markets via the Trans-Caspian transport route or commonly known as the Middle Corridor.

More attention to Kazakhstan

The importance of Kazakhstan regarding natural resources has been highlighted before. Multiple European railway and logistics companies have turned their attention to the Central Asian country to launch coal transport services, for example. Moreover, recently, with the Middle Corridor gradually becoming increasingly important for connections between the European and Central Asian markets, several companies have expressed interest in launching their business in Kazakhstan and neighbouring countries.

Karabayev’s comment that Austria, Germany, Lithuania, Latvia, Estonia and Hungary are willing to become official members of the corridor is not surprising. Lithuania, Latvia and Germany have been attempting to establish closer ties with Kazakhstan recently and include it more actively in their supply chains. However, the development of Hyrasia One, its future role as a significant cargo volume generator and the assignment of Kuryk Port as its central transport hub could have functioned as an extra initiative for countries to join the route.

‘A new logistics focal point’

“This agreement (Hyrasia One and Semurg Invest) allows us to develop the transportation capacities and worldwide shipping possibilities further. For Europe in particular, the Trans-Caspian route is of highest importance. The route has been proven by Deutsche Bahn engineering and consulting to be able to allow transport of the full amount of up to 11 million tons annually from Hyrasia One’s location to the EU,” commented Wolfgang Kropp, CEO of Hyrasia One.

He explained that his company, in collaboration with Deutsche Bahn, have analysed the possible alternatives to transport hydrogen produced in Kazakhstan and found that the Middle Corridor was the most efficient and sustainable solution. Estimations show that the transit time will be around 25 days from the port of Kuryk to Europe. Kropp also underlined that the port of Kuryk will become “a new logistics focal point” in a development that will bring a major customer along the Middle Corridor.