Lithgow leading the charge: Why rail electrification is Australia’s best bet for fuel security and economic growth

The recent article by Christopher M. Johnson on Australia’s liquid fuel security risks underscores an urgent reality: our nation remains dangerously dependent on imported oil. As global supply chains face increasing instability, the risks to Australia’s economy and national security are mounting. The solution is clear – electrification of transport, particularly rail, offers a pathway to energy independence, economic growth, and environmental sustainability.

Nowhere is this transition more feasible and economically viable than in the conversion of diesel-powered trains to electric. A ground-breaking initiative in Lithgow, NSW, led by Elderton Engineering, is proving that Australia has the capability to take the lead in sustainable rail transport. The recent visit from a Japanese railway delegation, including JETconnect CEO Eiki Shigeta, highlights the growing international interest in Lithgow’s expertise in battery-electric and solar-powered rail solutions.

Fuel security and electrification: A national imperative

Johnson rightly points out that Australia’s reliance on imported oil exposes us to global shocks. More than 90% of our liquid fuel supply is imported, with refineries shutting down and our strategic reserves held offshore. In contrast, Australia has abundant renewable energy resources, positioning us to power our transport sector domestically. By converting diesel trains to electric, we can reduce fuel imports, strengthen energy security, and shield industries from volatile oil markets.

Lithgow is demonstrating how this transition is not only possible, but profitable. The world’s first fully solar-powered passenger train, built by Elderton Engineering and now operating in Byron Bay, is proof of concept. The train generates more power than it consumes, with 77% of its solar energy exported to the grid, flipping the traditional fuel model on its head.

Rail freight is another major winner. Elderton Engineering is ready to lead the charge in converting diesel freight trains to battery-electric technology, with designs capable of tackling the steep inclines of the Blue Mountains and operating efficiently through to Sydney and beyond. These trains could also be equipped with pantograph technology, allowing them to draw power from existing electrified rail infrastructure while seamlessly switching to battery power on non-electrified tracks. This hybrid approach would maximise energy efficiency, significantly reduce air and noise pollution, and cut freight emissions, creating a cleaner, quieter, and more sustainable rail network. With technology now proven, costs coming down, and solutions ready for implementation, word needs to get out to hauliers and rail freight service providers – electrification is no longer a future concept but an immediate opportunity to transform the industry.

A global opportunity for Australian engineering

Lithgow’s expertise is now attracting global attention. Japan’s Yamagata Railway is working with Elderton Engineering to convert its diesel fleet to battery-electric, potentially setting a precedent for rural rail networks worldwide. If Japan — one of the world’s most advanced rail nations — is looking to Lithgow for solutions, it signals that Australia can lead in renewable rail technology exports.

A smart investment: Jobs and regional growth

Beyond national security and economic benefits, rail electrification has the potential to revitalise regional economies. As Lithgow positions itself as a manufacturing hub for electric train conversions, the industry could create high-skilled jobs in engineering, battery technology, and rail refurbishment.

A call to action

To truly unlock Lithgow’s potential as a hub for rail electrification and sustainable manufacturing, the federal government must step up. A grant to Lithgow City Council to buy back the long-vacant Lithgow Locomotive Workshop from Pacific National would be a game-changing investment. This site, which occupies a third of Lithgow’s industrial land, has sat idle for 20 years, a wasted opportunity in a region primed for growth.

If Lithgow City Council owns the property, it would prevent the site from falling into private hands again, ensuring it remains a public asset that benefits the local economy. By leasing it to manufacturing companies, the council could generate a steady income stream, while securing high-skilled, long-term jobs for the community. With rail electrification set to boom, this facility could become a national centre for train conversions, advanced manufacturing, and renewable energy innovation.

The technology is ready, the international interest is growing, and Lithgow has the expertise to lead the charge. The time to act is now. It’s time for the federal government to invest in the future – starting with Lithgow.