
The partnership offers a low‑risk, incremental route to slash freight‑train emissions, potentially reshaping UK rail decarbonisation policy and investment priorities.
Rail freight remains the most carbon‑intensive segment of the UK rail network, largely because the dominant Class 66 diesel fleet operates on routes where electrification is unlikely in the near term. Operators have traditionally faced a binary choice: continue with high‑emission diesel power or invest in costly new hydrogen or battery locomotives. Retrofitting existing traction offers a middle ground, preserving asset value while delivering immediate emissions benefits. This approach also aligns with broader sustainability goals, allowing freight operators to meet tightening regulatory targets without disrupting service reliability.
Project Phoenix builds on HyOrc’s multi‑fuel technology, which can run on natural gas or LPG before transitioning to fully onboard hydrogen once supply chains mature. By scaling a proven one‑megawatt generator to a three‑megawatt locomotive package, the study will assess critical factors such as fuel storage within UK loading‑gauge limits, safety certification, range, and tractive effort compared with current diesel performance. The staged rollout reduces technical risk, giving operators operational data before committing to full hydrogen deployment and enabling a smoother learning curve for maintenance crews and infrastructure providers.
If successful, the retrofit model could become a template for other markets with legacy diesel fleets, from Europe to Asia, where capital constraints hinder wholesale fleet replacement. Securing funding through the Connected Places Catapult accelerator would signal government endorsement, potentially accelerating policy incentives for low‑carbon retrofits. Moreover, the commercial case—lower upfront costs, extended asset life, and incremental emissions cuts—could shift industry investment away from expensive new‑build programs toward scalable, modular upgrades, hastening the rail sector’s overall transition to net‑zero logistics.
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