A company is being launched by three ex-SpaceX engineers to build self-powered electric train cars. This will improve the efficiency of freight rail and reduce emissions.

Transporting freight by train is more energy efficient than using trucks. CNBC CEO Matt Soule stated that one train unit can move one truck load of freight in half the time due to improved aerodynamics.

Soule said that “because of the design of rail, it has its operating and economic limitations.” “But if you can break through those barriers and allow rail to serve more of these markets — that’s the opportunity.”

It could be a significant part of reducing carbon emissions and contributing to climate change by switching freight from diesel power to electric. According to A.I.T., transportation accounts for 29% in total US greenhouse gas emissions. report issued by the Environmental Protection Agency in Dec. 2021. It’s almost a quarter of that comes from medium and heavy duty trucks.

Soule stated to CNBC that “we believe it is very pertinent to concentrate on energy usage reduction.”

Soule had an unconventional way of getting the idea.

Soule, who started SpaceX in 2006 as the Head of Avionics was responsible for making the electronic components that make the rocket fly straight. Soule left SpaceX in 2019 to wait for a new friend and technologist. Brian Ignaut, for coffee, and watching YouTube on his phone. He was randomly shown a video about freight trains by the algorithm. He was struck by the potential of the freight train system, and his need to lower its carbon emissions.

The idea was already coming together by Thanksgiving 2019. Soule launched the company in January 2020 with two additional SpaceX employees. John Howard Ben Stabler. The three kept their secret until Wednesday. On Wednesday they announced that a $50million funding round was in place. Anthos Capital.

Although the company is in prototype, it has yet to see customers and generate revenue. This funding round is the latest. Parallel SystemsThe seed capital of $3.6million was used to fund the construction and testing of rail vehicles. It will also help grow the company.

With its 25-strong staff, the company has so far employed about 25 engineers from various tech companies such as Google and Microsoft. Google, TeslaPlease see the following: UberParallel Systems is a manufacturer of several prototypes. It has also tested its first-generation car on an open track in Los Angeles.

Each vehicle works in pairs. Each pair carries one standard shipping container — the same box that goes on flatbed trucks and gets loaded in and out of ships in port cities across the globe.

Each car carrying the container is self-powered. However, the system works best when the cars can be linked together. Parallel Systems proposes to have a group of 10-50 self-powered freight vehicles, Soule explained to CNBC.

It’s much shorter than conventional freight trains that can carry up to 200 cars. Freight trains are becoming more common today. favor lengthThe more items a train can transport, the less it costs to move them all. Soule said that unloading and parking them can be a hassle.

To unload and load freight on a very long train, you need a huge train terminal. This can cause problems because freight loading ports and destinations are usually located in cities like Los Angeles where space and land are scarce.

Automated train platoons can improve logistics at train stations and reduce costs.

“The terminal dwell time and land requirements are much shorter because the vehicles position themselves under the crane,” explained the spokesperson. Dean Wise, a former vice President of Network Strategy at BNSF Rail who now advises the company.

Soule freely admits that just because the cars are electric, it does not automatically make them green. The power of that electricity depends on the way that that electricity is produced.

However, an electric railcar can at most emit zero greenhouse gases while diesel trains always do.

Furthermore, electric rail cars use 25 percent more energy than long-haul trucks, so their batteries require 25% less storage space than long-haul trucks. Soule indicated that although the company has not decided on which type of batteries it will use, they are looking into the storage space for utility-scale technologies.