Deutsche Bahn has signed an agreement to buy 13,000 tons of renewable diesel from Neste.
The German rail operator said the move would reduce emissions by around 46,000 tonnes compared with using traditional diesel.
Neste MY Renewable Diesel is produced 100 percent from renewable raw materials, such as used cooking oil, and can reduce greenhouse gas emissions from trains by up to 90%.
Similar to sustainable aviation fuel (SAF), which Neste supplies to airlines, the fuel can be used in diesel-powered vehicles without the need to make modifications to engines.
Peter Zonneveld, Vice President, Europe and APAC, at Neste’s Renewable Road Transportation division, said: “With our renewables production capacity increasing to 5.5 million tons by the end of 2023 and further to 6.8 million tons by the end of 2026, we are well-equipped to help our customers around the world to make the switch to more sustainable solutions.”