Under a new $1.5 million supply agreement announced June 5, 2025, Vancouver-based Ballard Power Systems will deliver 12 FCmove-XD fuel cell engines to support the conversion. The initiative represents a targeted approach to decarbonize short-line rail operations and meet California’s tightening environmental regulations.
Unlike passenger rail networks where electrification through overhead wires is more feasible, freight operators often require alternative solutions that maintain route flexibility. Hydrogen fuel cells offer a way forward by providing consistent power output and eliminating the need for extensive new infrastructure.
The FCmove-XD modules are designed for heavy-duty applications, making them well suited to replace diesel engines on non-electrified freight rail lines. Key operational advantages include long-range capabilities and rapid refueling—essential in freight operations that cannot afford lengthy downtimes.
For Sierra Northern Railway, which operates nearly 105 miles of track across Northern and Southern California, the project fits into the state’s broader drive to slash transportation emissions and trial emerging clean energy technologies.
The deal positions Ballard to expand its footprint in the growing North American hydrogen rail market. With regulatory pressure mounting and rail operators seeking practical decarbonization options, hydrogen is emerging as a credible solution for freight applications where battery electrics may fall short.
Battery-electric locomotives have proven effective for lighter, short-haul operations, but hydrogen fuel cells are gaining traction for longer-range freight services that demand consistent, high power output across diverse terrain and environmental conditions.
Sierra Northern Railway brings an additional layer of integration to the project. As part of the Sierra Railroad Company group—which also owns Sierra Energy Corporation—the operator has access to proprietary FastOx gasification technology that can convert waste into clean hydrogen. This vertical integration offers a potential model for rail operators aiming to manage both their hydrogen supply chain and sustainability goals.
