The Australian Renewable Energy Agency (ARENA) has announced $9.4 million in funding on behalf of the Federal Australian Government, launching a new project to electrify rail freight transport of commodities in Australia.
Australia transports about 56% of its natural freight by rail and leads the world in heavy haul freighting – one automated train can carry the equivalent load of 631 B-Double trucks.
The rail freight industry’s position in Australian supply chains means it represents a sizable opportunity to reduce emissions related to commodities and resources, especially the battery and critical minerals needed for the energy transition.
Heavy haul fleet decarbonisation
The $9.4 million grant from ARENA will be combined with an $18.8 million ‘Battery Powered Tender for Heavy Haul Fleet Decarbonisation’ project awarded to Australia’s largest rail freight company, Aurizon Operations Limited.
The project will aim to develop, test and trial a battery electric tender to power a diesel-electric locomotive in a hybrid battery configuration.
ARENA CEO Darren Miller said the project was addressing an emissions challenge in one of Australia’s largest industries.
“Aurizon’s battery electric tender is a world first that hopes to pave the way for the rail freight industry and help the resources on its decarbonisation journey.”
Hybrid battery system
Using a hybrid battery system offers an alternative to electrifying railway infrastructure that would counter the need for an entire railway system overhaul.
Emissions from Australia’s heavy haul freight industry account for 0.8% of Australia’s carbon emissions, some 4 million tonnes of carbon dioxide.
“The resources industry is a pillar of the Australian economy, but also accounts for a significant share of emissions,” Miller said.
“ARENA is investing in the technological solutions that will enable the sector to reduce emissions across its operations.”
Project design is underway and Aurizon expects to begin trial operations in early 2026.