Energy Transition, LNG, Natural Gas, Emissions

February 13, 2025

IEW 2025 INTERVIEW: GreenLine planning EV trucks for short-haul, expanding LNG-powered fleet

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HIGHLIGHTS

Aims to have 1,000 LNG-powered trucks by March

Environmental benefits make LNG a strategic choice

India’s 2030 gas share target ‘both ambitious and achievable’

GreenLine Mobility Solutions, a part of India's Essar Group, is "actively working" toward launching electric vehicle trucks for short-haul operations while also pursuing other initiatives to expand and strengthen sustainable logistics, company CEO Anand Mimani said.

"Through our subsidiary, Ultra Gas & Energy Ltd., we are strategically expanding into LNG retail by developing a network of LNG pumps along key logistics corridors across India," Mimani told S&P Global Commodity Insights in an interview during the India Energy Week 2025.

Currently, there are only 24 LNG hubs nationwide, and GreenLine has operational outlets in Vallam in Chennai, Anand in Gujarat and Bhilwara in Rajasthan, Mimani said.

Presently, GreenLine operates a fleet of over 500 LNG-powered trucks, delivering goods to industries such as FMCG, automotive, oil and gas, metals and mining, cement and construction.

The company is targeting to ramp up its fleet to 1,000 LNG-powered trucks by March, said Mimani.

"This expansion will help us significantly reduce carbon emissions, improve operational efficiency, and support the sustainability goals of businesses across India," he said.

GreenLine has already reduced carbon emissions by about 9,327 mt to date, significantly contributing to the decarbonization of heavy-duty transport, Mimani said.

Using an LNG-powered trucking fleet brings significant advantages, particularly in reducing emissions—cutting CO2 by up to 30%, NOx by up to 59%, and particulate matter by up to 91%, he said.

These trucks are well-suited for long-haul operations, offering extended range and leveraging an evolving LNG infrastructure, he said.

Meanwhile, electric trucks represent an important step toward zero-emission mobility.

While their adoption is currently more aligned with short-haul applications, advancements in battery technology and infrastructure are steadily expanding their viability.

"Our focus on sustainability goes beyond alternative fuels—we integrate advanced technology to enhance safety and efficiency," Mimani said.

"Each of our vehicles is equipped with Level 1 ADAS cameras for driver behavior monitoring, reinforcing road safety and responsible operations," he added.

Challenges and opportunities

GreenLine has partnered with various players including Exide Industries, Merino Laminates, Flipkart, in the past to promote green mobility solutions.

It is also collaborating with other companies to make their supply chains sustainable by offering eco-friendly, LNG-powered logistics solutions as Environmental, Social, and Governance, or ESG, goals gain traction, Mimani said.

The private sector's involvement has significantly contributed to adopting LNG-powered trucks in India. However, key industry challenges remain, including the need for a more extensive refueling network and the high initial costs of LNG trucks, he said.

The volatility in LNG prices also introduces some unpredictability, making it challenging for businesses to manage fuel costs and plan, Mimani said.

Platts, part of Commodity Insights, assessed the LNG West India Marker for March at $16.325/MMBtu on Feb. 12, at a discount of 17.2 cents/MMBtu to the March JKM assessment.

"While fluctuations create short-term uncertainty, the long-term environmental and operational advantages continue to make LNG a compelling choice for many companies," Mimani said.

"To unlock its full potential, greater price stability and a more robust supply chain are essential," Mimani said, adding that addressing these hurdles will help establish LNG as a more reliable and widely adopted solution in the industry.

Greater policy support, targeted incentives, and increased awareness of LNG's benefits will be essential to driving wider adoption, according to Mimani.

Additionally, strengthening infrastructure and encouraging further investment will play a crucial role in making LNG a more accessible and viable option for the logistics industry, he said.

Capital costs are certainly a consideration for companies evaluating LNG trucks, as the initial investment is higher than diesel trucks.

However, long-term advantages such as fuel efficiency, lower maintenance needs, and environmental benefits make LNG a strategic choice for businesses prioritizing sustainable operations, Mimani said.

As the market matures and technology advances, upfront costs can be expected to decline, making LNG a more accessible option for the logistics sector, he said.

India's 2030 gas target

"India's goal of increasing the share of gas in its energy mix to 15% by 2030 is both ambitious and achievable, provided we focus on the right levers," Mimani said.

According to some industry sources, gas currently accounts for about 6%- 7% of the country's energy mix.

Meeting this target requires major investments in infrastructure, technology, and policy support, including expanding gas networks and developing cleaner alternatives, Mimani said.

Industries, businesses, and consumers should be incentivized to adopt gas as a preferred energy source, while a strong partnership between the government and the private sector, along with consistent regulatory frameworks, will also foster long-term sustainability, he added.