Are Hydrogen Trains The Future?

June 2, 2025

Deutsche Bahn wants diesel gone, yet 1,300 locomotives still burn it on branch lines. Now, via a new alliance with UK electrolyser firm ITM Power, the operator plans to swap that fuel for on‑site green hydrogen.

The multi‑year framework covers design, build and operation of hydrogen hubs at DB depots. Consequently, ITM will deploy modular 20 MW PEM stacks that drink surplus wind and solar power. By generating fuel where it is used, DB expects to avoid the trucking bottlenecks that derailed earlier pilots.

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Hydrogen Shortages Hamper Progress

Hydrogen traction is not brand‑new. Nevertheless, Alstom’s Coradia iLint units in Lower Saxony suffered fuel shortages and component glitches in 2024, forcing temporary returns to diesel. Therefore, DB is betting that deeper pockets and full‑scale infrastructure will fix reliability.

ITM Leads the Way in Modular Hydrogen Generation

ITM arrives with fresh momentum. Its Sheffield gigafactory has ramped to one gigawatt of annual stack capacity and could reach five by 2027. In May the company won a 300‑megawatt contract for an Asia‑Pacific power‑to‑hydrogen project, sparking an 18 percent jump in its share price. Analysts at BNEF now expect electrolyser costs to dip below €1,000 per kilowatt within two years, eroding diesel’s remaining economic edge.

Rail emits barely 0.4 percent of EU greenhouse gases, yet diesel loco exhaust remains the dominant source inside stations. Germany’s Federal Environment Agency calculates that each hydrogen‑converted regional train could avoid roughly 90 tonnes of CO₂ a year. When the gas is produced with offshore wind—think Ørsted’s North Sea farms—the lifecycle footprint approaches zero.

Policy Shifts Away From Diesel

Policy winds are also shifting. The EU’s Alternative Fuels Infrastructure Regulation, for instance, mandates clean refuelling options on every core rail corridor by 2030. As a result, DB and ITM hope to open their first 100‑tonne‑per‑day hub in Schleswig‑Holstein by 2027, serving a busy non‑electrified freight line into Hamburg.

The Hydrogen Payback

Environmental gains look material. According to Germany’s Federal Environment Agency, each converted regional train could cut roughly 90 tonnes of CO₂ per year. Meanwhile, pairing electrolysers with Ørsted’s North Sea wind farms drives the lifecycle footprint close to zero. Investors, therefore, have noticed: ITM shares jumped 18 percent in May after a 300 MW deal in Asia‑Pacific. Furthermore, analysts at BNEF forecast electrolyser prices falling below €1,000 kW by 2027, finally eroding diesel’s remaining cost edge.

For rail decarbonisation, momentum now rests on execution—but the blueprint is clear.

HydrogenEnergy #SustainableTransport #CleanEnergy #GreenRail #HydrogenTrains