Rumo invests in hybrid locomotives with support from BNDES.

Funding expands rail transport of biofuels and reduces CO₂ emissions in the Midwest.

19.01.2026 | 17:17 (UTC -3)
BNDES Agency

The Brazilian National Bank for Economic and Social Development (BNDES) has approved financing of R$ 350 million, using resources from the Climate Fund, for Rumo to acquire six hybrid locomotives and at least 160 tank wagons with the aim of expanding the logistics of biofuel cargo, especially corn ethanol, in the Midwest. With this project, transportation capacity will increase by 928 m³ per year (32% more than the volume of biofuels transported in 2024).

Hybrid locomotives are railway equipment that combine two primary traction systems—an internal combustion engine (such as diesel) and an electric motor powered by batteries or generators—allowing for different operating modes with greater energy efficiency. In this arrangement, the combustion engine can operate only in optimal regimes to generate electricity or provide direct traction, while the electric system complements the power, reduces peak consumption, and stores energy recovered through regenerative braking, ensuring that both systems actively contribute to movement.

“The adoption of hybrid traction represents the most viable technological alternative for decarbonizing the railway matrix in the short and medium term, due to its lower implementation cost and less dependence on complex civil works, which reinforces the innovative nature of the initiative. With hybrid technology and the replacement of road transport with rail transport, the project estimates a reduction of 62,3 tons of CO2 per year. Road transport emits eight times more CO2 per useful ton-kilometer (TKU),” says the president of BNDES, Aloizio Mercadante.

 “Rail transport, by its very nature, stands out for its energy efficiency and low carbon emissions, and we are always seeking technology to evolve even further. Investing in rail transport is crucial for advancing the decarbonization of Brazil's transport matrix in the long term, helping the country consolidate its global leadership in production chains that require competitive and sustainable logistics, with a vocation for transporting large volumes over long distances. Therefore, expanding investment in rail, with competitive access to financing lines such as the Climate Fund, is a way to recognize and value the sustainability attributes of this mode of transport and its strategic contribution to the national economy. We have taken a very important step and certainly have room to substantially increase the share of rail in our matrix,” highlights Natália Marcassa, Vice President of Rumo.

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