LNG for long-haul trucking

lndia's path of transition to net zero carbon emissions has many challenges, with the rapidly growing transport sector presenting the toughest challenge of clean fuel adoption. The NITI Aayog has been pushing for zero-emission trucks replacing diesel-run heavy-duty trucks (HDT) and medium duty trucks (MDT) to significantly reduce vehicular emissions along the country’s highways, but the policy push has come across many speed bumps. The country’s apex policy think tank has proposed the adoption of Liquefied Natural Gas (LNG) in place of diesel for long-haul trucking towards achieving India’s goal of decarbonising the transport sector. The NITI Aayog’s latest report, “LNG as a Transportation Fuel in Medium and Heavy Commercial Vehicles,” has presented a fact sheet based on present and future scenarios to impress upon stakeholders in the trucking sector to go for the transition. Some of the key highlights in the report are that the trucking sector caters to 70% of India’s freight demand, and HDTs and MDTs account for 76% and 21% of the road freight demand, respectively. It estimates that by 2050, the share of HDTs’ demand for road freight travel is expected to increase to 83% of long-haul freight. The number of trucks plying on Indian roads and highways is expected to more than quadruple, from the current fleet of 4 million to roughly 17 million trucks by 2050, due to the continuous increase in road freight. The increase in road network from 54.02 lakh km to 63.37 lakh km over the past ten years was accelerated by the PM Gatishakti Master Plan for seven engines of growth: roads, railways, airports, ports, mass transport, waterways, and logistics infrastructure. Official data shows that the National Highway (NH) network length in the country has increased by 1.6 times from 91,287 km to 1,46,145 km in the past decade, bringing more trucks onto the network as improved connectivity has fuelled logistics demand. The length of the 4-lane and above NH network has increased by more than 2.5 times from 18,371 km in 2014 to 46,720 km, while the length of the 2-lane NH network has almost halved from 27,517 km to 14,350 km, implying that HDTs and MDTs are able to transport freight to more areas. The government’s emphasis on the development of high-speed access-controlled NHs to improve the logistics efficiency of the country is poised to increase the movement of HDTs and MDTs. According to NITI Aayog, the trucking sector is responsible for one-third of transport-related carbon emissions in India, which explains the importance of the policy push for zero-emission trucks. However, the adoption of zero-emission trucks like those running on LNG is critical for the trucking industry. Long-haul truck range anxieties will continue to influence the trucking industry’s choice of fuel as HDTs and MDTs need to travel long distances in the range of 600–800 km with single filling. The advantages highlighted in the report include a higher density of LNG compared to diesel, which gives a longer vehicle range, but a higher upfront cost comes in the way of its adoption. The use of Compressed Natural Gas (CNG) has played a crucial role in reducing vehicular emissions in the transport sector through its adoption in public and private passenger cars, autorickshaws, and buses, but due to the heavy load of freight, its use in HDT and MDT to replace diesel is not feasible. Another key factor that the report highlights regarding LNG use in trucks is Total Cost of Ownership (TCO) which includes capital cost, rate and term of financing, fuel cost, salary of drivers and staff, toll charges, and annual maintenance and replacement costs. It insists that both diesel and LNG heavy duty vehicles (HDVs) have similar TCOs, while that for EV (Electric Vehicle) HDVs and FCEV (Fuel Cell Electric Vehicle) HDVs is significantly higher. The TCO of a diesel truck is approximately 2 percent higher than that of an LNG truck. This difference between the two can be increased further to drive the adoption of LNG by lowering or exempting toll charges as an incentive to promote its adoption as an alternative fuel, it adds. It also refers to the draft LNG policy 2 issued by the Ministry of Petroleum and Natural Gas, which focuses on strategies to increase LNG as a transport fuel. The policy proposes incentivizing retrofitting of exiting HDVs for LNG use in long-haul trucking. Installation of India’s first 50 LNG fuel stations along the Golden Quadrilateral has shaped the ecosystem for the policy push on zero-emission HDVs, but the availability of LNG along the NH network and key economic corridors will be crucial to influencing the investment decisions of stakeholders in the trucking industry. Aligning infrastructure and logistics growth with the country’s climate goals is crucial for India to stay on course along the path of net zero carbon emissions. The NITI Aayog’s report is a ready reckoner for the trucking industry, policymakers, and other stakeholders to plan future strategies and goals.