In California, Sierra Northern Railway is leading the way in the adoption of hydrogen fuel cells to decarbonize its rail operations. The company has announced a $1.5 million supply agreement with Ballard Power Systems to retrofit three diesel locomotives with 12 FCmove-XD fuel cell engines. This move is part of California's broader effort to reduce transportation emissions and comply with stringent environmental regulations. Unlike passenger rail networks that can easily electrify using overhead wires, freight operators like Sierra Northern Railway need alternative solutions for their non-electrified routes. Hydrogen fuel cells present a viable option by providing reliable power output and eliminating the need for extensive new infrastructure. The FCmove-XD modules are specifically designed for heavy-duty applications, offering long-range capabilities and quick refueling, ideal for freight operations that cannot afford extended downtimes. This initiative not only showcases Sierra Northern Railway's commitment to sustainability but also highlights the growing momentum of hydrogen fuel cells in the North American rail market. It is noted that while battery-electric locomotives are suitable for short-haul operations, hydrogen fuel cells are becoming preferred for longer-range freight services that require consistent high power output across various terrains and conditions. Moreover, Sierra Northern Railway's access to FastOx gasification technology through its ownership of Sierra Energy Corporation provides additional integration to the project, offering a potential model for rail operators looking to manage their hydrogen supply chain and sustainability objectives.