The University of Derby, in collaboration with Clayton Equipment, is spearheading an innovative rail project in the East Midlands aimed at revolutionizing freight transport through hydrogen fuel cell technology. Supported by the East Midlands Investment Zone (EMIZ), this initiative focuses on replacing traditional diesel shunter locomotives with environmentally friendly fuel cell hybrids. The project, part of the broader push towards achieving Net Zero goals in the UK, is one of 15 innovation pilots endorsed by the East Midlands Combined County Authority. To assess the viability of transitioning from diesel-hybrid to hydrogen-powered locomotives, the research team has developed a sophisticated digital twin simulation. This simulation evaluates various factors such as refueling processes, energy requirements, and emission reductions across different operational scenarios. The utilization of hydrogen fuel cells, a technology already successful in automotive and passenger rail applications, presents an opportunity to not only improve performance but also significantly reduce emissions. By integrating this technology into shunting operations, the project foresees the creation of new commercial prospects, advancement in low-carbon logistics, and the stimulation of engineering skills and component manufacturing within the UK. Furthermore, the project is set to play a pivotal role in shaping future manufacturing standards and bolstering the region's position in the development of sustainable and cutting-edge transport technologies. Situated in Derby, a crucial hub for the rail industry and the forthcoming headquarters of Great British Railways, the initiative also aims to drive exports and allure investments in local testing and development facilities.