Wabtec and Union Pacific Railroad Partner to Reduce Emissions with Higher Biodiesel Blends

Rhea-AI Summary

Union Pacific Railroad (NYSE: UNP) will implement a higher biodiesel blend in locomotives obtained from Wabtec (NYSE: WAB) as part of its environmental strategy. This collaboration aims to boost low-carbon fuel usage to 10% by 2025 and 20% by 2030. Initial testing of B20 biodiesel and R55 renewable diesel will begin in California in Q2 2022, contributing towards a 26% reduction in greenhouse gas emissions by 2030 and a net-zero target by 2050. Both companies emphasize the importance of sustainable fuel solutions in the rail industry.

Positive

• Union Pacific's commitment to increase low-carbon fuel usage to 10% by 2025 and 20% by 2030.
• Testing of B20 biodiesel and R55 renewable diesel supports environmental goals and emissions targets.
• Partnership with Wabtec enhances sustainability initiatives within the rail industry.

Negative

• None.

OMAHA, Neb. and PITTSBURGH, Pa., March 8, 2022 /PRNewswire/ -- Union Pacific Railroad (NYSE: UNP) will begin using a higher biodiesel blend in locomotives it acquired from Wabtec (NYSE: WAB). The new collaboration helps Union Pacific as it works to increase the percentage of low-carbon fuels consumed to 10% of its total diesel consumption by 2025 and 20% by 2030.

"Increasing the use of renewable diesels and biofuels currently represents the most promising avenue to help Union Pacific meets its environmental goals," said Beth Whited, Union Pacific's Executive Vice President – Sustainability and Strategy. "We want to drive emissions down as quickly as possible, and we believe this new project with Wabtec will make a difference."

Union Pacific will begin testing with B20 biodiesel and R55 renewable diesel on trains powered by Wabtec FDL engines operating in California in the second quarter. As testing progresses, it is anticipated that higher percentages of biofuels will be used. The project will help Union Pacific meet its science-based target to reduce greenhouse gas emissions 26% by 2030 and reach its ultimate goal of net-zero emissions by 2050.

"Union Pacific has a comprehensive ESG initiative, which includes the exploration of alternative fuels and emerging technologies," said Bob Bremmer, Group Vice President for Wabtec's Fleet Innovation and Transformation division. "Biodiesel and renewable diesel are important sustainable solutions for the rail industry both in the near-term and in the future."

Wabtec locomotives were previously approved for B5 R30 (5% biodiesel and 30% renewable diesel) for locomotive engines. Biofuel is a domestically produced, clean-burning, renewable substitute for petroleum diesel. This renewable fuel increases energy security and improves air quality.

Additional information about Union Pacific's environmental efforts is available in its Climate Action Plan.

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.

About Wabtec
Wabtec Corporation (NYSE: WAB) is focused on creating transportation solutions that move and improve the world. The company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for over 150 years and has a vision to achieve a zero-emission rail system in the U.S. and worldwide. The company has approximately 27,000 employees located at facilities in 50 countries throughout the world. Visit Wabtec's website at: www.wabteccorp.com

 

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SOURCE Union Pacific Railroad Company

FAQ

What biodiesel blend is Union Pacific using with Wabtec locomotives?

Union Pacific will use a higher blend of biodiesel, specifically B20 and R55 renewable diesel.

What are Union Pacific's emissions reduction targets?

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

When will Union Pacific start testing the new biodiesel blends?

Testing of the new biodiesel blends will begin in California in the second quarter of 2022.

What is the stock symbol for Union Pacific and Wabtec?

The stock symbols are UNP for Union Pacific and WAB for Wabtec.