Pixie dust is a dangerous pollutant as due to it's small size it can enter the lungs. It's also carcinogenic. You are wrong on the global warming though, in large quantities in the atmosphere, especially at the high altitudes it's usually found (as a bi-product of air travel, how else do you think planes fly) it tends to reflect radiation back into space which causes a mean reduction in temperature.
Anyway. The 139 is the Parry People Mover. I think it's right that it uses a small diesel engine to power up a flywheel which then drives the wheels through a mechanical transmission. The flywheel can also get energy from braking which can then be used to accelerate the train. It's like a hybrid car or bus, but uses a flywheel instead of batteries. I've never been on one of them, but from the videos I've seen they are pretty noisy and weird. Somewhere between a toy train and a Mk2 mini Pacer.