North American railroad Union Pacific announced it has purchased ten FLXDrive battery-electric locomotives from manufacturer Wabtec. The purchase marks the largest number of FLXDrives placed in a single order for Wabtec, as well as the largest investment in battery-electric locomotives by a North American railroad (Union Pacific).
Union Pacific Railroad ($UNP) is one of the longest-tenured railroads in North America, having been founded in 1862. It currently operates over 8,000 locomotives across 23 of the Western United States, including Illinois and Louisiana.
Union Pacific considers trains the most environmentally-friendly means to transport freight and has recently made further vows to help reduce its own greenhouse gas emissions. This past December, the American railroad published its first comprehensive Climate Action Plan, outlining efforts to significantly reduce emissions throughout its operations.
As part of that plan, UP plans to reduce its Scope 1 and 2 emissions 26% by 2030, and achieve net zero emissions by 2050. That’s why a purchase from Wabtec makes a lot of sense. Wabtec Corporation ($WAB) is a manufacturer and freight company with over 150 years of expertise in locomotives.
Last June, Wabtec began a California pilot program with its FLXdrive battery-electric freight locomotive. Since the FLXDrive has been commercialized, Wabtec has already seen four orders from railroads including Canadian National Railway (CN) and Rio Tinto in Australia.