Union Pacific Railroad to Assemble World's Largest Carrier-Owned Battery-Electric Locomotive Fleet

Rhea-AI Summary

Union Pacific Railroad (NYSE: UNP) announced plans to acquire 20 battery-electric locomotives for yard operations, marking a significant investment of over $100 million in battery technology. This initiative aims to create the world's largest carrier-owned battery-electric locomotive fleet. The locomotives will be tested in California and Nebraska for performance under varying weather conditions, targeting net zero emissions by 2050. The project is part of Union Pacific's broader Climate Action Plan, which aims for a 26% reduction in GHG emissions by 2030.

Positive

• Union Pacific's investment of over $100 million in battery-electric technology is a market-moving commitment.
• Acquisition of 20 battery-electric locomotives positions Union Pacific as a leader in sustainable rail operations.
• Expected reduction of 4,000 tons of carbon emissions annually per 10 locomotives utilized.
• Collaboration with the Port of Los Angeles to further support emissions reduction initiatives.

Negative

• None.

OMAHA, Neb., Jan. 28, 2022 /PRNewswire/ -- Union Pacific Railroad (NYSE: UNP) today announced plans to purchase 20 battery-electric locomotives for testing in yard operations. The combined purchases and upgrades to yard infrastructure are expected to exceed $100 million, representing the largest investment in battery-electric technology by a U.S. Class I railroad. The locomotives will be acquired from Progress Rail, a Caterpillar company, and Wabtec Corporation (NYSE:WAB), two companies at the forefront of locomotive innovation, and will be the world's largest carrier-owned battery-electric locomotive fleet in freight service.

"We're committed to actions that reduce Union Pacific's environmental footprint as we work toward our ultimate goal of reaching net zero emissions by 2050," said Lance Fritz, Chairman, president and CEO of Union Pacific. "These investments will contribute to further developing this important technology and providing industry-wide benefits."

Union Pacific anticipates the first units will arrive on site in late 2023 with complete delivery by late 2024. The locomotives will be used in rail yards in California and Nebraska, where they will be tested for performance in cold and warm weather, helping identify the locomotives' capabilities and challenges for broader deployment.

Battery-electric locomotives do not use fuel and emit zero emissions. For every 10 battery-electric locomotives used, approximately 4,000 tons of carbon will be eliminated annually, the equivalent of removing 800 cars from the highway. By working with the locomotive manufacturers in this test phase, Union Pacific hopes to advance battery-electric technology development and evaluate its potential deployment in long-haul service.

Union Pacific published its first comprehensive Climate Action Plan in December 2021, outlining its efforts to significantly reduce greenhouse gas (GHG) emissions within its operations. As part of that commitment, Union Pacific will reduce absolute Scope 1 and 2 GHG emissions 26% by 2030 and achieve net zero greenhouse gas emissions by 2050.

As it works toward its goals, Union Pacific is collaborating with community partners. The Port of Los Angeles, which recently received a Diesel Emission Reduction Act (DERA) grant from the U.S. Environmental Protection Agency, awarded Union Pacific a subaward that will partially cover the cost of one battery-electric locomotive.

"Our work with the Port of Los Angeles will help us cut emissions in the South Coast Air Basin, which includes four counties in Southern California," said Beth Whited, executive vice president and chief human resource officer, who oversees Union Pacific's ESG efforts. "This work also will help our customers realize the benefit of moving goods by rail, reducing emissions by up to 75 percent."

ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.

www.up.com 
www.facebook.com/unionpacific 
www.twitter.com/unionpacific

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/union-pacific-railroad-to-assemble-worlds-largest-carrier-owned-battery-electric-locomotive-fleet-301470846.html

SOURCE Union Pacific Railroad

FAQ

What is Union Pacific's investment in battery-electric technology?

Union Pacific is investing over $100 million to acquire 20 battery-electric locomotives for testing.

When will the battery-electric locomotives be delivered?

The first units are anticipated to arrive in late 2023, with complete delivery by late 2024.

How much carbon emissions will be reduced with the new locomotives?

Each set of 10 battery-electric locomotives is expected to eliminate approximately 4,000 tons of carbon emissions annually.

What are Union Pacific's emission reduction goals?

Union Pacific aims to reduce GHG emissions by 26% by 2030 and achieve net zero emissions by 2050.

Which companies is Union Pacific partnering with for the locomotives?

Union Pacific is acquiring locomotives from Progress Rail and Wabtec Corporation.