GreenLine Logistics To Add 1,000 LNG Trucks At Rs 850 Crore

GreenLine Logistics plans to roll out at least 1,000 Liquefied Natural Gas powered heavy-duty trucks to cater to firms from hard-to-abate sectors as they shift gear to meet their ESG targets. The green logistics service provider has tied up with firms from cement, ceramics, mining and steel sectors to provide cargo handling services as well as last mile delivery of LNG.

The logistics firm is the first company to deploy LNG-fueled heavy-duty trucks to decarbonise road logistics in the country. It has around 85 operational LNG tankers and CNG cascades at present.

We plan to add 200 LNG trucks by March 2023. In the next year to March 2024, an additional 800 LNG trucks will be added to the fleet

Anand Mimani, chief executive officer at GreenLine Logistics

The company will invest Rs 850 crore for the 1,000 LNG trucks that it will source from Blue Energy Motors. Both GreenLine Logistics and Blue Energy Motors are portfolio companies of Exponentia Ventures, a Dubai-based fund run by Anshuman Ruia, part of the second generation of the Ruia family that founded Essar Group. The company believes as the cost of owning LNG or electric vehicles will go down in coming years, the adoption will increase further. According to Mimani, an ICE or conventional heavy-duty truck costs anywhere around Rs 35 lakh, LNG tanker costs Rs 60 lakhs and an electric commercial vehicle cost around Rs 1.2 crore.

Given the development of entire ecosystem for electric vehicle and their adoption will take around three to five years and the hydrogen automotive ecosystem will take over five to seven years, LNG is the best alternative available to companies to reduce carbon emission from their logistics and go green, economically.

Anand Mimani, chief executive officer at GreenLine Logistics

“Each LNG truck can potentially reduce around 24 tonnes of carbon dioxide emissions per year, compared to diesel trucks. Effectively translating into a CO2 emissions reduction of 24,000 tonnes per year for a fleet of 1,000 LNG trucks.” Additionally, switching to LNG can reduce other toxic emissions significantly, particulate matter by around 91%, sulphur oxides (SOX) by 100% and nitrogen oxides (NOX) by around 59%, said Mimani

An LNG vehicle gives a range of 1,400 km on a single fill with a 40 tonne payload. This compares with a 250 km range for a CNG vehicle with 11-12 tonne payload

Anand Mimani, chief executive officer at GreenLine Logistics

GreenLine Logistics is also in talks with companies like Hindustan Zinc Ltd., JSW Steel Ltd., Tata Steel Ltd., Dalmia Cement Ltd., Birla Cement to convert their heavy truck fleet to LNG. “In the next six months we expect to sign commercial agreements with them,” Mimani said. LNG for automotive is an established technology globally, with China leading the way in its adoption.

There are around seven lakh plus LNG heavy commercial vehicles plying in China. Several other countries have adopted LNG HCVs – Europe and U.S. have around 50,000 and around 30,000 LNG vehicles respectively. Europe initiated the LNG Blue Corridors in 2018 to establish LNG as a real alternative for medium and long-distance transport by implementing a sustainable transport network for Europe.

In India, the government is keen to promote use of LNG as an automotive fuel to become a gas-based economy and has removed any restrictions in setting up LNG refueling infrastructure. The much-awaited LNG Policy is expected to offer more incentives for promoting LNG as an automotive fuel in India, Mimani said.

Source : https://www.bqprime.com/business/greenline-logistics-to-add-1000-lng-trucks-at-rs-850-crore