The Australasian Railway Association is set to a release a report into the industry’s approach to decarbonisation and what work is needed to hit net-zero targets.
New research by the Australasian Railway Association (ARA) has confirmed that the rail industry is at a critical juncture in its efforts to decarbonise its operations.
In the next eight to 13 years, about half of the nation’s diesel-powered rollingstock will need to be replaced, with the next generation of locomotives to have a lifespan well beyond 2050.
While the industry has progressed a range of trials in new technologies to replace diesel-powered trains, low and zero emissions rollingstock are not yet commercially available in Australia.
The ARA’s Rollingstock Decarbonisation Critical Path, released in July, found that a shared, national strategy developed in partnership by governments and industry is urgently needed to confirm the policy, regulatory, skills and infrastructure settings required to support this transition.
Without this, uncertainty around the ability to introduce new technologies to the Australian network will act as a handbrake on research and innovation and constrain the industry’s ability to address hard to abate sections of its operations.
Leading the net zero transition
In the short term, greater use of rail can deliver substantial emissions reductions in the transport sector.
Rail generates significantly less emissions than other transport modes and is the most energy efficient form of transport for moving people and goods.
On our passenger networks, greater use of active and public transport not only reduces emissions, but improves health and safety, busts congestion and reduces air pollution. Cities and communities planned with public transport at its heart are generally more sustainable, because they reduce the distances we travel and promote healthy options such as walking and cycling.
Meanwhile, a number of governments have targets to move more freight on rail in recognition of the significant carbon savings that can be delivered by rail.
As the nation’s freight task continues to grow, moving more freight on rail is becoming increasingly important to supporting a sustainable and resilient freight network.
Greater use of rail will therefore be a crucial part of the transport sector’s decarbonisation, particularly as we approach 2030 emissions reduction targets.
Keeping the focus on the long term
While the immediate emissions benefits the industry offers is clear, rail will also need to decarbonise to meet the needs of a net zero future.
About 90 per cent of the rail industry’s scope 1 and 2 emissions are generated by traction energy used to power locomotives.
About 30 per cent of this is related to passenger operations and is primarily generated by electricity. While renewable energy sources for electrified rail networks will need to be confirmed, this transition is already in progress and the pathway to decarbonised operations is relatively clear.
The remaining 70 per cent is related to rail freight, where most freight operations are powered by diesel on sections of the national network that are not easily electrified.
Emissions from these operations will be more difficult to abate, because they require new, low or zero emissions technologies to be adopted.
At the moment, those technology solutions are not yet clear.
The ARA’s research identified a phased transition will be required between now and 2050, starting with achieving energy efficiencies using existing rollingstock, and exploring drop-in solutions such as biofuels or renewable diesel.
These solutions are likely to drive emissions reduction efforts over the next five years. Beyond 2030, new technologies such as battery electric and hydrogen are expected to become more available and present a longer-term solution for the industry.
Adopting these technologies will require retrofitting existing rollingstock or purchasing new models – a significant investment for industry.
Early planning now will be essential to prove new technology pathways and ensure other considerations such as changing regulations and building new skills and supply chain capability to support these technologies have been fully considered.
Urgent action is therefore needed to create the certainty required to unlock the significant investment in low and zero emissions technologies that is approaching.
focus on research and innovation
A number of research and pilot projects are underway to test new technologies. Several resources companies are trialling battery electric locomotives in the Pilbara region of Western Australia, as is Aurizon on the east coast.
Fortescue is exploring ammonia powered locomotives in the west as well.
While this progress on battery-electric trials is promising, Australia has not seen the same degree of focus on hydrogen – in stark contrast to the overseas experience.
More research and innovation will be required, and stronger collaboration and information sharing will be essential to speed the industry’s progress.
The ARA is supporting collaboration across the industry, with its Heavy Haul Decarbonisation Working Group and Rollingstock Decarbonisation Working Group both providing avenues for information sharing on progress in this field. Both working groups have been instrumental in the development of the Rollingstock Decarbonisation Critical Path, sharing key opportunities and barriers the industry must work on together.
The research also explored funding models to support further research and collaboration.
The ARA welcomed the recent announcement of the Australian Renewable Energy Agency (ARENA) funding for battery electric tender demonstration project led by Aurizon.
Our research confirmed that ARENA provided an ideal funding stream for new and novel technologies to prove concepts that could support the industry’s decarbonisation.
Additional financing through bodies such as the Clean Energy Finance Corporation and National Reconstruction Fund could provide opportunities to assist industry in building scale once technologies had been proven.
Beyond this, more research is likely to be required at a systems level to support the integration of new technologies on the national network. Research bodies such as the recently created Australian Rail, Research and Innovation Network (AusRRIN) may be well placed to have a role in this work.
Creating energy certainty
A key issue identified by the research was the need for energy certainty for the rail industry.
An interim solution of biofuels and renewable diesel will require greater access to these resources, at the same time the demand for renewable fuels is rising across many industries.
Similarly, the hydrogen industry is still developing, and would need to be in abundant supply and available in key locations to support the operation of hydrogen trains.
Even battery electric technologies will require access to renewable energy sources and consistent charging infrastructure across the national rail network.
The ARA has highlighted the importance of planning for the transport sector’s energy needs in its submission to the Federal Government’s electricity and energy sector plan consultation.
But there are opportunities here too.
Aligned energy and transport sector planning could benefit regions, where rail networks are already well developed and provide an opportunity for the co-location of renewable energy infrastructure.
This highlights the importance of co-ordinated planning across sectors as Australia continues to work towards net zero.
Building a national strategy
The ARA has recommended that the development of a national strategy for rollingstock decarbonisation be considered as an action in the transport and infrastructure net zero roadmap and action plan, providing an opportunity for collaboration between federal and state governments, as well as industry.
We are also exploring opportunities to better define the skills needed to support a decarbonised rail industry. This includes through new research being delivered by Infrastructure Net Zero, of which the ARA is a founding member.
The pathway to decarbonising rollingstock is long term, but there are strong opportunities for early gains in the years ahead. The ARA is committed to supporting these efforts.