At OptiFuel Systems, we're making big changes in heavy-duty transportation. We sell locomotives and power equipment that is not only cost-effective but also produces near-zero emissions. OptiFuel is a Qualified Opportunity Zone Business (QOZB) and can accept Qualified Opportunity Fund (QOF) investments.
Where We Started
Back in 2013, our journey began as an R&D company with a singular focus: repowering diesel locomotives for the Indiana Harbor Belt (IHB) Railroad using innovative dual-fuel (diesel/CNG) technology. Fast forward to 2019, a milestone year for us—we unveiled our inaugural CNG fuel station for rail and introduced our first four Tier 4 locomotives. These locomotives still operate daily at the IHB Railroad, just south of Chicago, IL.
During our tenure with IHB, the railroad industry experienced a seismic shift. As global fleets transitioned from Tier 3 to Tier 4 emissions technology, major suppliers faltered. The development of Tier 4 locomotive technology proved an immense challenge. The only two freight locomotive suppliers in North America - GE Transportation and Caterpillar/Progress Rail (EMD engine) - had major technology failures. This created what we believed to be an unprecedented market opportunity. With only seven years of rail experience, we had the highest performing Tier 4 locomotive of ay supplier. Over the course of the next few years, we found ourselves becoming the leading authority on next-generation locomotive power solutions.
In 2019, the EPA announced plans to enforce a policy mandating the transition of US railroads to zero-emission by 2050 (Tier 5). It was a pivotal moment—we rallied our small team to chart a solution. After more than a 100 year history of diesel-powered locomotives, the time had come for the world's railroads to transition to clean power.
Where We Are Today
Now, as we step into 2025, our team has successfully developed near-zero (Tier 5) locomotives. OptiFuel Total-Zero Switcher Locomotives were officially launched in 2024, with the first unit completed on September 9, 2024 for Sierra Northern Railway (SNR). We secured $9.8 million in customer contracts for switcher locomotives, which are locomotives <2400hp used in yard applications, the first year of commercialization. With strong market traction and rising demand, we project to close out 2025 with over $100 million in switcher locomotive orders.
We're actively constructing the first Total-Zero Line Haul Locomotive. Line haul locomotives, which are locomotives >4000hp that travel long distances at high speeds over distances of 1000 miles or more between fuel stops, represent 70% of the total market. Because of their speed, heavy-haul requirements, and pass-through of cities, testing and certification, called FRA concurrence, takes about 2 years. This locomotive will be showcased throughout 2025-2026 as it undergoes rigorous performance and emissions testing at the world's leading locomotive center of excellence - the FRA's Transportation Technology Center (TTC) in Pueblo, CO.
Competitive Products: There are currently no other freight locomotive suppliers with a minimum viable product for line haul, much less a unit in pre-production. OptiFuel holds a nearly 10-year lead in technology readiness at a time of unprecedented demand.
Our closest competitor is Wabtec, who has announced that they expect to begin R&D efforts on a hydrogen line haul locomotive. The company is also expected to focus additional efforts on a battery-electric line haul locomotive. To date, Wabtec's battery-electric trials have achieved 4400hp for a maximum of 30 minutes, falling far short of the minimum continuous power requirement of 1000 miles.
Turnkey, Fully-Integrated Solutions with a Customer-Centric Focus
OptiFuel equipment empowers railroad customers to reliably enhance operations, regain valuable competitive advantage, and take back market share lost to trucking through resilient, reliable, value-driving operations.
OptiFuel’s Refueling Solutions Plan provides for line haul operators to run locomotives without changes to routes, distance between stops, refueling time, or capital expense budgets. This diesel-RNG locomotive integrated refueling system approach is already in service at the Indiana Harbor Belt Railroad (IHB) outside of Chicago.
Net-Zero Operations
OptiFuel Total-Zero™ Diesel-RNG Dual Fuel Locomotives are capable of operating on 100% diesel or blends with up to 35% renewable natural gas (RNG), empowering customers to achieve net-zero greenhouse gas emissions at their own pace. Regardless of fuel blend, all Total-Zero™ locomotives deliver near-zero NOx and PM emissions.
Future Markets
Commercialization of our line haul locomotive unlocks recurring revenue streams from long-term RNG fuel contracts, as well as maintenance and other services contracts. OptiFuel advances novel modularity that will allow us to efficiently deploy a range of zero-emission products. Our core products include the Total-Zero Power Module and Total-Zero Fuel Storage Module. These plug-and-play modules have multiple use cases in adjacent markets, such as generator systems and marine power.
We appreciate your time and interest and are happy to provide additional detail and answers to any questions you may have. We are enthusiastic about the future of our company and hope you will join us for the journey ahead as we accelerate the pace to next-generation rail.
Please contact us at any time to schedule a call, request additional files, ask questions, or meet our team!
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