Remora DAC Revenue-Sharing Model, $117 M Raised, 3 Rail Partnerships with Union Pacific, and a 2026 Test Plan (2025-2026)

Remora Mobile Capture Projects, Shifting from Trucking Pilots to Rail Commercial Scale

In 2025, Remora‘s commercial strategy pivoted from initial semi-truck applications to a concentrated effort on the freight rail sector, securing partnerships with Class I railroads that validate its mobile carbon capture technology for a larger, more centralized emissions market. This move signals a strategic scaling from a distributed fleet of trucks to a more concentrated and high-impact deployment on locomotives, addressing a significant source of transportation emissions.

Remora’s Initial Trucking Focus (2021-2024)

Remora‘s initial market entry focused on developing and deploying a mobile carbon capture system for Class 8 semi-trucks. The company established its core value proposition during this period, offering a device that could be retrofitted to existing diesel fleets. Early technical specifications from 2021 claimed the system could capture approximately 80% of a truck’s CO₂ emissions. This phase was crucial for proving the technical feasibility of mobile, point-source capture and for developing the revenue-sharing business model that would become central to its expansion strategy.

Remora’s Strategic Pivot to Freight Rail (2025)

The year 2025 marked a decisive shift toward the freight rail industry, a sector responsible for a substantial portion of transportation emissions. This pivot was defined by a series of key agreements with major North American rail operators to develop and test a tender-based capture system for diesel locomotives.

• On May 1, 2025, Remora announced collaborations with Class I railroads Union Pacific and Norfolk Southern to adapt its technology for locomotives, targeting a capture rate of 70% to 90%.
• This was followed by a partnership with Genesee & Wyoming Inc. on May 28, 2025, to deploy the technology on two of its subsidiary railways, the Buffalo & Pittsburg Railroad and the Indiana & Ohio Railway.
• A co-development agreement with Pacific Harbor Line (PHL) was announced on November 12, 2025, focused on refining the tender-based exhaust scrubbing system specifically for freight rail applications.

$117 M in Funding, Remora Investment to Scale Rail Technology

Remora‘s strategic expansion into freight rail in 2025 is directly supported by significant venture capital funding, which has been allocated to accelerate technology adaptation, scale manufacturing, and acquire key assets for research and development. This financial backing provides the necessary resources to de-risk the technical and commercial challenges associated with entering a new, capital-intensive market.

Remora’s Series B Funding and Milestones

The company’s growth is financed by a total of $117 million in venture funding raised to date. A critical component of this was a $60 million Series B round led by Valor Equity Partners. This funding was structured in phases, contingent on Remora achieving specific technical milestones, aligning investor capital with demonstrated progress. These funds are instrumental in scaling the company’s manufacturing capacity and operational footprint to service its new rail partners.

Remora’s Locomotive Acquisition for R&D

A primary use of its recent funding was the strategic purchase of a 4, 400-horsepower locomotive in April 2025. This acquisition provides Remora with a dedicated testbed for its rail-focused capture system, allowing for rapid iteration, testing, and refinement of the technology outside of partner-owned operational constraints. The locomotive serves as a critical R&D asset to prepare the system for on-train pilot testing scheduled for 2026.

Table: Remora Key Investments and Capital Allocation (2025)

Remora 3 Major Rail Agreements Signal Industry Validation (2025)

In 2025, Remora established a strong foothold in the freight rail sector by securing pilot and development agreements with three major rail operators. These partnerships are critical for validating the technical performance and, more importantly, the economic viability of its revenue-sharing model within the unique operational environment of North American railroads. These collaborations with companies like Union Pacific and Norfolk Southern represent significant industry endorsements of Remora‘s approach.

Remora’s Class I Railroad Collaborations

The company announced its expansion into the rail sector on May 1, 2025, with partnerships involving Union Pacific and Norfolk Southern, two of the largest Class I railroads in North America. Shortly after, on May 28, 2025, it added a similar agreement with Genesee & Wyoming Inc., a leading operator of short-line and regional freight railroads. These agreements provide Remora with access to diverse operational environments and a direct path to deploying its technology on active freight routes.

Remora’s Co-Development with Pacific Harbor Line

The agreement with Pacific Harbor Line (PHL), announced on November 12, 2025, marks a deeper level of collaboration. This partnership is structured as a co-development effort to refine and advance the tender-based carbon capture system. Working closely with PHL, which serves the busy ports of Los Angeles and Long Beach, allows Remora to tailor its technology to the specific demands of port and drayage operations, a key node in the freight logistics network.

Table: Remora Key Rail Partnerships (2025)

North America Focus, Remora Targets US Rail and Trucking Corridors

Remora‘s activities are concentrated in North America, leveraging the continent’s extensive and mature freight transportation networks. The company’s strategy is geographically centered on the United States, targeting both the national trucking industry and, more recently, the Class I railroad systems that form the backbone of the country’s logistics infrastructure.

• Based in Michigan, Remora‘s initial focus was on the US semi-truck market, a diffuse but massive source of emissions.
• The 2025 expansion into rail solidifies its North American focus, with partners like Union Pacific, Norfolk Southern, and Genesee & Wyoming operating coast-to-coast networks across the U.S.
• The business model necessitates the build-out of a CO₂ offloading and offtake infrastructure network at strategic points like distribution centers and rail yards, further anchoring its operations within US freight corridors.

Technology Maturity, Remora Mobile Capture Technology from Truck Pilots to Rail System R&D

Remora‘s mobile capture technology has advanced from a pilot-proven system for semi-trucks to a dedicated research and development phase for freight rail applications. The acquisition of a test locomotive in 2025 marks a critical step in maturing the technology for this new market, moving it from adaptation and design to hands-on testing and validation ahead of planned commercial pilots.

• Between 2021 and 2024, Remora focused on its truck-mounted system, demonstrating its core capture process with a claimed efficiency of up to 80%. This period established the commercial and technical foundation.
• The focus in 2025 shifted to adapting this core technology for a locomotive tender car. This involves significant engineering to handle the larger exhaust volumes and different operational dynamics of a train. Efficiency claims for the newer systems have increased to as high as 90%.
• While the fundamental process of capturing, purifying, and liquefying CO₂ onboard remains constant, the current development work centers on the engineering and integration of the system into a rail-specific format.
• The next major validation point for the technology’s maturity is the planned start of on-train testing in 2026, which will provide crucial performance data from real-world operations.

SWOT Analysis, Remora’s Business Model and Market Entry

Remora‘s primary strategic advantage is its innovative revenue-sharing business model, which removes the upfront capital barrier for customers in the hard-to-abate transportation sector. However, the viability of this model is dependent on overcoming the significant logistical challenges of establishing a new CO₂ collection and distribution network at scale.

Table: SWOT Analysis for Remora’s Mobile Carbon Capture Strategy

Remora 2026 Outlook: On-Train Pilots and CO 2 Offtake Agreements

The critical path for Remora in the next 12-18 months involves demonstrating its technology’s viability in live rail operations and securing the commercial agreements necessary to support its revenue-sharing model. The success of the planned 2026 on-train pilots will be the primary catalyst for commercial-scale orders and will serve as the ultimate validation of the company’s strategic pivot to the rail sector.

• If Remora successfully begins on-train testing in 2026 as planned, watch for performance data on capture efficiency, fuel penalty, and operational reliability from partners like Union Pacific or PHL. This data will be crucial for securing commercial orders.
• If the pilots prove successful, these could be happening: new offtake agreements for the captured, beverage-grade CO₂ with partners in industries like concrete production or food and beverage, which are essential to making the revenue-sharing model profitable.
• If market traction builds, watch for announcements regarding the location and construction of the first permanent CO₂ offloading sites at rail yards or distribution centers, a key sign of infrastructure build-out.
• If the company meets its technical milestones, these could be happening: discussions for a potential Series C funding round to finance the full-scale manufacturing and deployment of its rail capture systems.

The questions your competitors are already asking

This report covers one angle of mobile carbon capture’s entry into the freight rail market. The questions that matter most depend on your work.

• CO2 offtake agreements for transportation carbon capture
• Carbon capture for locomotives companies
• Battery electric locomotive pilot projects US
• Logistics of collecting captured CO2 from trains

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