California's Sierra Northern Railway is leading the shift towards low-emission rail transport by embarking on a hydrogen conversion project to retrofit three diesel locomotives. Through a $1.5 million supply agreement with Ballard Power Systems, the railway will receive 12 FCmove-XD fuel cell engines, aiming to decarbonize short-line rail operations in compliance with California's tightening environmental regulations. Unlike passenger rail networks, where electrification is common, freight operators like Sierra Northern Railway require flexible solutions. Hydrogen fuel cells provide a way to maintain route flexibility, offering consistent power output and eliminating the need for extensive new infrastructure. The FCmove-XD modules are tailored for heavy-duty applications, enabling them to replace diesel engines on non-electrified freight rail lines. This initiative aligns with California's efforts to reduce transportation emissions and explore clean energy technologies. The deal with Ballard Power Systems positions the company to expand in North America's hydrogen rail market, as hydrogen emerges as a credible solution for freight applications requiring high power output and long-range capabilities. Sierra Northern Railway's integration within the Sierra Railroad Company group allows access to FastOx gasification technology, enabling the conversion of waste into clean hydrogen. This integration showcases a potential model for rail operators to manage hydrogen supply chains and sustainability goals.