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Rail already offers strong transport efficiency, but much of Australia’s freight, regional passenger and heavy-haul tasks still depend on diesel-powered rolling stock operating on non-electrified corridors. For this part of the sector, low carbon liquid fuels (LCLFs) are one option for reducing emissions while longer-term pathways such as electrification, batteries and hydrogen continue to develop.

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Reducing emissions Fuels for rail Depot refuelling Policy and regulation

Rail at a glance

6.5 million tonnes

of greenhouse gas emissions from rail a year

This covers Australia’s passenger and freight rail networks, and counts the emissions from producing the fuel as well as burning it .

About 71%

of rail emissions come from freight

Most freight locomotives run on diesel. Many passenger networks run on electricity .

1.4 billion litres

of diesel-equivalent energy

How much diesel would carry the same energy as freight rail uses in a year, counting fuel production as well as burning .

About 5%

of Australia’s domestic transport emissions

Rail moves a large freight task for a small share of transport emissions. Road transport dominates .

How rail is reducing emissions

Rail decarbonisation differs across the network. Metropolitan passenger services are largely electrified, while diesel locomotives remain the dominant power for rail freight, heavy haul and regional passenger services over long distances and remote routes.

1

Operational improvements

Train planning, energy management, regenerative braking, maintenance and better network performance cut fuel and electricity use, and deliver the earliest reductions available .

2

Network electrification where viable

Electrification removes diesel use altogether on the corridors that suit it, where traffic density, infrastructure cost and power supply make it practical .

3

Battery, hydrogen and bi-mode locomotives

Battery and hydrogen rolling stock are emerging for shorter, well-defined operations. Bi-mode locomotives can draw overhead power where a network is electrified and run on their own power where it is not .

4

Drop-in low carbon liquid fuels

Renewable diesel is close enough to conventional diesel to run in existing locomotives without modification, and biodiesel can be used in blends. This matters because about half the diesel fleet is not due for replacement until 2030 to 2050, and rolling stock lasts 25 to 30 years .

Fuels for rail

For existing diesel rail fleets, the main low carbon liquid fuel options are renewable diesel and biodiesel. Low carbon liquid fuels are most relevant for non-electrified freight, regional passenger and heavy-haul services.

A diesel-equivalent hydrocarbon fuel produced from oils, fats and residues through hydrotreating (HVO/HEFA). Chemically and functionally different from biodiesel.

How it can fit in rail

  • Freight locomotives
  • Heavy-haul locomotives
  • Regional passenger trains
  • Shunting locomotives
  • Track maintenance machines

Considerations

It can align with paraffinic diesel specifications and may be suitable for some existing engines, subject to original equipment manufacturer (OEM) approval and operating conditions.

Learn more

A liquid fuel made by reacting fats or oils, such as vegetable oils, used cooking oil or tallow, with an alcohol. Reacting with methanol produces fatty acid methyl esters (FAME); reacting with ethanol produces fatty acid ethyl esters (FAEE).

How it can fit in rail

  • Freight locomotives (blends)
  • Shunting locomotives
  • Depot and maintenance plant

Considerations

Usually requires closer attention to blend limits, storage, maintenance practice and OEM requirements.

Learn more

Depot refuelling and bulk supply

Step 1

Supply the depot

Rail fuel is supplied through locomotive depots, wayside refuelling points, mobile refuelling and bulk storage. A fuel change starts with supply reliability: can the volume be delivered where the fleet refuels?

Step 2

Store it safely

Bulk tanks must be compatible with the fuel and bunded to AS 1940: at least 110% of the largest tank, or 25% of all tanks, whichever is greater.

Step 3

Test before use

Fuel testing and documentation at the depot, with biodiesel blends watched for water and oxidation. Renewable diesel stores like conventional diesel.

Step 4

Approve the change

Maintenance practice, OEM approval and the operator’s safety-management processes all need updating before a new fuel enters service.

Policy, regulation and technical guidance

The sections below cover the standards, policy settings, certification criteria and organisations shaping how low carbon liquid fuels are used across the rail sector, grouped by the role they play.

Fuel quality and technical standards

These decide whether a fuel is legal to sell in Australia and fit to run in locomotives and rail plant.

Certification criteria

If a fuel is bought or claimed as low carbon, these schemes decide whether the claim counts and how it is proven.

Key rail sector bodies

Industry bodies that set the standards and guidance shaping how rail adopts low carbon liquid fuels.

Australia

Australian Rail Industry Standards Organisation (ARISO)

Industry-led body supporting nationally harmonised rail standards and technical requirements in Australia.

ARISO

International

International Union of Railways (UIC)

International railway body publishing technical references on diesel traction, emissions and rail decarbonisation.

UIC

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Diesel fuels Fuel supply chains Funding initiatives