VTG

The goals of phasing out coal by 2030 and achieving climate neutrality by 2040 are pointing the way forward. Hydrogen, hydrogen derivatives, (bio-)LNG and CO₂ will already be playing a major role in the years ahead. Germany plans to eventually import a large share of these low-emission energy sources. The rail freight sector is transporting large volumes of them – sustainably, safely, reliably and over long distances – and therefore playing a crucial role in securing the energy supply.

Transporting LNG by Rail

LNG is already being usedas fuel to transport heavy goods. It is replacing diesel in trucks and ships and can significantly reduce transport-related emissions.

LNG is brought by ship to Europe, where it is either fed into the natural gas grid at LNG terminals or transported to consumers via containers and rail tank cars. In the future, more and more bio-LNG will also be produced decentrally within Europe. The rail transport sector can play an important role in transporting it. For example, ablock train can carry as many as roughly 52 trucks while reducing the resulting CO₂ emissions by a bit more than 80 percent. The LNG can be safely transported into the hinterland in specially manufactured rail tank cars or containers. In 2015, VTG was the first company in the rail freight sector to present an innovative freight wagon with a vacuum-insulated tank that can bypass shipping routes, road haulage and the pipeline network to transport LNG across Europe.

Rail as a Key Component of the Hydrogen and Carbon Management Strategy

Since producing hydrogen and hydrogen derivatives (e.g., ammonia or methanol) requires large quantities of cheaply available energy, imports by sea will become more and more important.

The rail freight sector can take advantage of a well-developed infrastructure network, available railway sidings and market-ready assets. At the same time, VTG is working with its customers to design optimized rail logistics concepts – including wagons, containers and traction – for transporting hydrogen via the railway network in both Germany and Europe.

Nineteen thousand trips by entire block trains could be needed every year as of 2035 to transport hydrogen.

In the coming decades, in addition to being highly important as a basic material for industry, ammonia will play an increasingly crucial role in efforts to secure the energy supply. From the terminals, the molecules can be distributed directly to industrial customers or supply decentralized ‘cracking furnaces,’ which turn ammonia into nitrogen and hydrogen. To this end, VTG is already working with energy suppliersto jointly design logistics concepts for supplying customers by rail. In doing so, VTG can draw on the experience it has gained with a fleet of more than 1,000 ammonia wagons.

Carbon Capture and Storage: Efficiently Transporting CO₂ by Rail

For the foreseeable future, it will not be possible to make some industrial processes – such as those in the cement and lime industries – carbon-neutral. As a result, we will need to use carbon capture and storage (CCS) if we are to achieve our climate-related goals. In addition to a core pipeline network, efficient and robust rail logistics will be needed if CO₂ emissions are to be avoided quickly and by as many industrial emitters as possible in Germany and Europe. VTG has already assisted a number of companies in this new transport market with their projects, and in the coming years, it will be bringing to the market a new generation of rail assets specifically tailored to the future needs of customers. However, it is crucial that the newly emerging value-added chains also receive support from policymakers and are factored into infrastructure planning.