Vale, Wabtec Partner on Alternative Fuels for Rail Operations -- Commodity Comment

By Jennifer Tershak

Vale and Wabtec will form a partnership to advance the decarbonization of rail operations with the goal of eliminating emissions with battery power and alternative fuels.

On Vale's FLXdrive order:

Vale will purchase three of Wabtec's FLXdrive battery locomotives and collaborate to test ammonia as a potential clean, alternative fuel to replace diesel. The three 100% battery-powered locomotives will be used on the Carajás Railroad, which runs the world's largest iron ore train consisting of 330 railcars transporting 45,000 tons. The companies said delivery of the locomotives is forecast for 2026.

On prospects for clean operation:

"Initially, we are maximizing energy efficiency, replacing the diesel locomotives in the dynamic helper with battery ones, but the idea is that, in the future, the other locomotives on the train can be fueled by ammonia. This way, we would have a clean operation at EFC," said Vale's Director of Energy, Ludmila Nascimento. "This agreement is the first of many that we are seeking in order to accelerate the decarbonization of our railway operation," she added.

Vale and Wabtec said they will work together on a study to use ammonia as a clean alternative fuel, which doesn't emit CO2. "Among the advantages of ammonia is the fact that it allows the locomotive a longer range than other carbon-free fuels. In addition, ammonia has a high-octane rating and an established large-scale distribution infrastructure."

On reducing carbon emissions:

"The FLXdrive locomotives are estimated to save 25 million liters of diesel per year, considering the consumption of all the railway's trains that use the dynamic helper. This savings would reduce carbon emissions by approximately 63,000 tons, the equivalent emissions of around 14,000 passenger cars per year."

Write to Jennifer Tershak at [e-mail]

(END) Dow Jones Newswires

July 13, 2023 10:32 ET (14:32 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.