Environmental BenefitsThe configuration of RailPower's hybrid locomotives leads to a significant reduction in emissions compared to conventional switching locomotives. RailPower's operating data shows that the Green Goat® has the potential to reduce fuel consumption and greenhouse gas (GHG) emissions by 40% to 70% and to decrease criteria air contaminants (CAC), which includes oxides of nitrogen and diesel particulates, by 80% to 90% while significantly lowering operating and maintenance costs. In standard yard service, one single unit will typically reduce GHG emissions by 271 tonnes per year and CAC's by five tonnes per year respectively with greater reductions where switching is heavy duty in nature or carried out 24/7. RailPower estimates that there are approximately 10,000 yard switchers and industrial switchers in use across North America. By adopting RailPower's hybrid locomotives, there is a potential total reduction in GHG and CAC emissions from switching locomotives of over 2,700 kilotonnes and 50 kilotonnes respectively. In 1995, in order to reduce NOX (oxides of nitrogen) emissions to 65% of readings taken in the mid-1990, the Environmental Protection Agency ("EPA") in the United States established a graduated program whereby locomotives must be "Tier 0", "Tier 1", or "Tier 2", compliant, depending on year of manufacture or remanufacture. Tier 2 standards apply to locomotives manufactured or remanufactured in 2005 and later whereas Tier 0 and Tier 1 standards apply to older locomotives. RailPower's hybrid locomotives are fully Tier 2 compliant and will continue to comply with all future requirements. In states such as California and Texas, where air quality is a major concern and subject to stringent regulations, a substantial amount of government funds have been set aside for emissions-reducing incentive programs such as the Carl Moyer Program in California and the Texas Emissions Reduction Program (TERP). RailPower believes its technology is amongst the most effective available to reduce significant amounts of NOX and initial applications for funding for the conversion of nine locomotives to RailPower's hybrid technology have recently been approved by TERP. Applications have also been made in California and RailPower anticipates additional successful applications in both California and Texas. Quick Fact: |