CSX, GE Transportation to Launch LNG Pilot Program

CSX and GE Transportation have agreed to launch a pilot program in 2014 to explore liquefied natural gas technology for locomotives.

CSX will be working over the next few months to develop a test plan and secure regulatory concurrence, according to the Class I railroad. In turn, GE, a transportation equipment manufacturer, will deploy its NextFuel Natural Gas Retrofit Kits to enable existing Evolution Series locomotives to operate with dual fuel capabilities.

CSX and GE will also work on the continued development of LNG technology for other classes of locomotives.

“LNG technology has the potential to offer one of the most significant developments in railroading since the transition from steam to diesel in the 1950s,” said Oscar Munoz, executive vice president and chief operating officer of CSX, in a written statement. “That change took many years to complete and began with a lot of unknowns, and this one is no different. But aggressively exploring this technology is consistent with CSX’s focus on tomorrow, its long-standing commitment to efficient and environmentally friendly transportation and its role in helping to promote U.S. energy independence.”

“Locomotives are at an inflection point in balancing engine performance with efficiency and adherence to emissions standards,” added Russell Stokes, CEO of GE Transportation. “As we enter a new era of energy sources and what’s possible for rail transport, we are excited to partner with CSX and lead the LNG transformation for the industry.”

GE has been testing low-pressure natural gas technology since the spring of 2013, and is working with other Class I railroads, too. Field tests are expected to begin in 2014.

CSX and Canadian National plan to offer insights into LNG at the 4th Annual World LNG Fuels Conference, taking place in January in Houston. Canadian National has already launched a pilot project in Alberta, and earlier this year, ordered four LNG tenders from Westport Innovations, which were scheduled for delivery in the fourth quarter of 2013.

Burlington Northern Santa Fe also intends to begin its own LNG pilot project later this year. Furthermore, Electro-Motive Diesel (Caterpillar), in addition to GE, has also announced its own gas-fueled locomotive models. “Thanks to locomotives’ high fuel consumption and utilization rate, LNG has emerged as a very promising fuel for the rail industry,” said Siyu Chen, lead LNG fuel analyst at Zeus Development Corp, in a published remark. “While a lot of questions remain about conversion cost, operational and regulatory challenges, there’s still a tremendous amount of excitement in the industry.”

LNG’s popularity has also been revving up in the container shipping industry as well.

Source: Journal of Commerce