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Burlington Northern fiddled with this a number of years ago (remember the tank cars sandwiched between two engines?), but it looks like it's now on the front burner (so to speak). Even new engine designs in the works.

 

BNSF Railway Takes a Closer Look at Natural Gas

 

The nation’s largest railroad is taking a closer look at natural gas to power its locomotives.

BNSF Railway operates more than 1,000 trains a day on one of the largest freight rail transportation networks in North America. By the company’s own estimates, it is the second-biggest user of diesel in the country, after the U.S. Navy. But that might change.

The company’s CEO told The Wall Street Journal that BNSF Railway is taking a closer look at cleaner, cheaper domestic natural gas. And it has already begun working with manufacturers to design the appropriate locomotives.

“This could be a transformational event for our railroad,” BNSF Chief Executive Matt Rose told the Wall Street Journal.

Shifting to natural gas would “rank right up there” with the industry’s historic transition away from steam engines last century, Rose said.

The reason for the switch is a simple one. According to federal statistics, a gallon of diesel fuel cost an average of $3.97 last year. The equivalent amount of energy using natural gas cost 48 cents at industrial prices. This is because America’s superabundance of abundant supply of natural gas has caused natural-gas prices plummeting.

BNSF is working with manufacturers to develop a locomotive that can run on diesel and gas, which Mr. Rose said could lower fuel costs and help meet federal air-pollution standards that take effect in two years.

The new locomotives, which use liquefied natural gas, are being developed by units of General Electric Co. and Caterpillar Inc. Rose said preliminary tests indicated that LNG-powered trains could go farther before refueling than diesel trains and have comparable towing power.

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Yes, things are indeed changing in global energy supplies. Here is a link to a BBC article that helps explain:

 

http://www.bbc.co.uk/news/business-22524597

 

From the article: "The IEA said it expected the US to overtake Russia as the world's biggest gas producer by 2015 and to become "all but self-sufficient" in its energy needs by about 2035."

 

It will be interesting to see how the railroads, specifically motive power, change and adapt.

 

-Len

There was an interview with Warren Buffett on CNBC in the last few weeks where he specifically mentioned that they were looking at experimenting with natural gas on their diesel locomotives.  Here is a link for those interested:

 

http://www.cnbc.com/id/100517773

 

If it works -- and I don't know enough about the technical aspects to envision what the challenges would be -- it would be fantastic.  Natural gas is much cleaner than diesel, and we produce tremendous quantities of it domestically, so it is also a secure fuel supply.  And the increased demand could be met by domestic production here and in Canada, putting more people to work producing what is a relatively clean energy.  This is a good news story all around if it pans out. 

Originally Posted by ChessieMD:

Cheaper than fossil fuels as well, but I'm sure that cheap natural gas will be in the cross hairs of the taxman.

I was wondering when someone would pick up on that.

 

And if/when all the railroads start burning natural gas (not to mention the US Navy, it seems), the ole supply-and-demand laws will kick in, quick.

 

This article is shot through with "coulds," "could bes," "mights" and other assorted speculative phraseology.  When it actually starts to happen, I'll be the first to applaud.  But for right now, let's stay calm and bear in mind that it's all vaporware for the time being.

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