LNG emerges as game-changer for cutting scope 3 emissions in India’s road transport sector

India can set a global example for sustainable transportation through the implementation of LNG.

India is currently pursuing what would appear to be two competing ambitions. On the one hand, it is powering up its economy to transform itself from an emerging market into a fully developed superpower. On the other hand, with its pledge to hit the net-zero mark by 2070, it has made a bold commitment to sustainability.

On the face of it, these two, it would seem, stand at odds against each other. But they don’t have to be.

The road transport sector holds the key to pursuing both simultaneously.

The sector accounts for a staggering 90 per cent of the overall emissions in the transportation industry. A significant contributor to these emissions is the extensive diesel-powered truck fleet traversing the vast subcontinent.

Yes, these trucks, in many ways, form the backbone of our economic growth. But they contribute as much as 12 per cent to India’s total greenhouse gas emissions, not the transport sector alone.

Switching them over to cleaner alternative fuels is, therefore, absolutely imperative. In this way, they can continue to, quite literally, drive our economy. At the same time, they can play a significant role in decarbonising the road transport sector.

But, while electric vehicles (EVs) have gained traction in two-wheelers, three-wheelers, and passenger cars for short-range, intra-city mobility, the last-mile freight transport and long-haul logistics sectors face unique challenges.

The technology required to power trucks over thousands of kilometres per day and batteries with the convenience of ‘drop-in’ fuels is still nascent and may take decades to mature.

Alternative fuels emerge as a viable solution in the race against time to combat climate change. Rather than reinventing the wheel, India can turn to a proven alternative already on the market: Liquefied Natural Gas (LNG).

A Cleaner, Greener Alternative

LNG, the cleanest burning fuel, offers a compelling solution by burning significantly cleaner than diesel, presenting a remarkable reduction in emissions from heavy trucking. Trucks powered by LNG emit up to 28 per cent less carbon dioxide, 70 per cent less carbon monoxide, and 59 per cent less nitrogen oxide than their diesel counterparts. Moreover, particulate matter emissions, a major contributor to air quality deterioration, are a staggering 91 per cent lower in LNG-powered trucks.

The energy density-to-emissions ratio of LNG surpasses that of other fuels in the logistics space, making it an environmentally friendly choice. Beyond their environmental benefits, LNG trucks offer economic advantages, with a longer service life of 10 years compared to the 7-year lifespan of diesel-powered trucks.

Global Success Stories

The global community has witnessed successful transitions from diesel to LNG in the road logistics sector, with China leading the charge. Presently, China has a fleet of approximately 850,000 LNG trucks on its roads, significantly improving air quality. While Europe and the United States also acknowledge the environmental benefits of LNG trucks, their numbers remain comparatively lower. In Europe, registrations for LNG trucks stood at approximately 16,000 as of 2022, with projections indicating a surge to 60,000 by 2030. In the US, estimates suggest a range of 10,000 to 15,000 LNG trucks as of 2023, with a steady increase attributed to governmental incentives and the expansion of LNG fueling stations nationwide.

These success stories highlight the transformative impact of LNG on mitigating emissions and promoting sustainable transportation practices. They serve as valuable case studies for India, demonstrating the positive outcomes achievable through a strategic shift to LNG-powered trucks.

The ‘Chicken-and-Egg’ Dilemma

However, adopting LNG in India faces a classic ‘chicken-and-egg’ dilemma. The absence of refuelling infrastructure for LNG has hindered demand from fleet owners, leading to a lack of interest from manufacturers and fuel providers. This lack of synchronisation between Original Equipment Manufacturers (OEMs), fleet operators, and refuelling infrastructure developers has created a barrier to the widespread adoption of LNG.

Breaking this cycle requires a concerted effort, and companies like Ultra Gas & Energy, Blue Energy Motors, and GreenLine Mobility Solutions Limited are stepping up to the challenge to catalyse an LNG-trucking revolution.

Collaboration and Investment

As India races against the clock to combat climate change, embracing LNG in the long-haul trucking sector is a pragmatic and immediate solution. By fostering collaboration between stakeholders and investing in LNG infrastructure, India can achieve its emissions reduction targets and pave the way for a sustainable and efficient future in transportation.

The development of a robust LNG ecosystem requires a multi-faceted approach. Collaboration between government bodies, private enterprises, OEMs, and fuel providers is paramount to overcoming existing challenges. Incentivizing the adoption of LNG-powered trucks through policy measures, tax incentives, and subsidies can create a favourable environment for fleet owners to transition. Additionally, corporations need to incentivize and prioritise LNG fleets to further accelerate the transition.

Lenders financing alternative fuel hubs play a crucial role in overcoming financial barriers, providing essential support for the development of LNG infrastructure, and fostering the widespread adoption of LNG-powered trucks in India’s long-haul trucking sector.

A Call to Action: Seizing the Opportunity for a Cleaner Future

The clock is ticking, and it’s time for India to seize the opportunity for a cleaner and greener road ahead. As the nation takes bold steps towards achieving its net-zero emissions target, LNG presents itself as a key enabler in transforming the long-haul logistics sector.

Therefore, adopting LNG in long-haul trucking is an environmental imperative and an economic opportunity. It aligns with India’s climate commitments while offering tangible benefits regarding reduced operating costs, extended service life, and improved air quality. The time for action is now, and by embracing LNG, India can lead the charge in sustainable transportation practices, setting an example for the world to follow.