16 July 2024

The train alternative for decarbonisation and inclusive development

Marisa Di Lullo, Italy Corporate Lending Executive Director

Railway transport has always been playing a major role in transportation since George Stephenson invented the first practical locomotive in 1829. In recent years the train transport has been seen also as a promising solution to boost sustainability and reduce negative environmental impacts such as greenhouse gas (GHG) emissions and pollution.

According to the International Energy Agency (IEA), rail transport has the lowest well-to-wheel emissions per passenger-km on average, i.e., 19 gCO2, eq/(passenger∙km), which is around one-third and one-sixth of those of buses and air transport, respectively. Trains are only responsible for 2 % of the total GHG emissions from the transport industry though they carry 8% of global passengers and 7% of freight. Moreover, rail transport helps increase social wellness and enjoyment: traveling by train is two times safer than by bus and 270 times safer than by car, and rail transport generates much less air pollution and traffic congestion than road transport.

The electrification of the rail system in Europe

Due to these advantages, many governments around the world are supporting the expansion and improvement of their rail networks. Therefore, it is important to develop clean and economic train technologies to support these expansions and achieve a net-zero railway transport sector.

In recent years, European rail operators have been making efforts to electrify their tracks but progress has been slow so far. In Europe and many parts of Asia, most of the busiest lines are already electrified but the situation is patchy, ranging from almost 100% electric operation in Switzerland and 71% of the Italian railway network to less than 50% in the UK and almost zero in some developing countries. In North America, diesel reigns supreme – especially on the dominant freight railroads – and there’s little appetite for electrification of the kind seen in Europe and Asia.

Alternative energy source 

In light of these difficulties, other measures may offer an immediate solution to help decarbonise European passenger rail using alternative energy sources such as biofuels, switching to hydrogen or battery-powered trains and optimizing energy efficiency in railway stations.

Where diesel-powered trains are still in use, many are looking to switch to alternative sources of energy such as biofuels. Although the cost is higher than fossil fuels at present and implementing their use may require some modifications to fueling infrastructure, several railways have embarked on pilot projects to do so. While the use of biofuels in trains is not a new phenomenon — for instance the Prignitzer Eisenbahn (PEG) in Germany has been running on pure biofuels since 2006 — many railways are joining the trend. Some railway companies in the United States and Europe are testing new biodiesel blends or pure, renewable hydro-treated vegetable oil (HVO) for their locomotives.

Hydrogen may become a zero-emission and potentially cost-effective replacement for diesel combustion engines, and hydrogen trains are already being piloted in Europe. Major fuel cell and hydrogen (FCH) manufacturers have a portfolio of more than 100 trains planned for production over the next five years. The challenges that need to be overcome to accelerate the adoption of hydrogen fuel in rail transport are first, although many studies suggest hydrogen storage and usage are safe, a large part of the public is still concerned with its safety. Second, effective on-board hydrogen storage has difficulties because hydrogen gas has much lower volumetric density than conventional fuels, and must be compressed to above 350 bar, or liquified at −253°C for onboard fuel storage. The high pressure or low temperature conditions lead to high expenditure on storage vessels and increased energy consumption for compression or refrigeration. Therefore, it is critical to reduce the capital, maintenance and operation costs of using hydrogen fuel and facilitate its adoption for rail transport.

Another rail alternative that can reduce fuel consumption by 50 percent compared to trains that rely exclusively on diesel are the battery hybrid technology. These trains have the ability to switch between battery power, electricity and diesel. They can travel roughly ten miles relying only on batteries, which recharge on their own as the train rolls down the tracks. The batteries can replenish themselves whenever the train is braking or by drawing electricity from an overhead apparatus that connects the train to a power line.

Trenitalia recently presented its first new quadruple-mode electric-diesel-battery inter-city train that will enter into service in southern Italy this summer. The long-distance train can be powered from 3kV dc overhead electrification used on the conventional Italian network, diesel traction, a combination of diesel and battery, or solely battery for up to 15km - primarily to reduce emissions on non-electrified routes in urban areas and cut noise levels in stations. The train can operate at a maximum speed of 160km/h with an acceleration of 1.1m/s2. Speeds are limited to 100km/h in battery mode. The hybrid-driving mode supports regenerative braking, while the new trains can offer an 83% reduction in carbon emissions compared with equivalent diesel-powered fleets. 

At BBVA we are aware of the banking’s prominent role in the transition towards a sustainable future through its financing and advisory activities. In fact BBVA and Ferrovie dello Stato Italiane SpA signed last year a 100 million euro green term loan, the first green corporate loan ever arranged by BBVA in Italy to contribute to create a greener world for future generations and we hope to continue the collaboration in the future.