GreenLine on Wednesday said that the green mobility solutions provider has been selected by Hindustan Zinc (HZL) as its sustainable logistics partner and will deploy LNG-powered trucks for its supply chain and transportation operations.

The development assumes importance as LNG is considered one of the best alternative fuels for energy transition in the next decade till the green hydrogen ecosystem becomes economically viable.

GreenLine, which is part of the Essar Group, will invest ₹200 crore for deploying LNG-powered trucks for HZL’s road logistics. HZL is GreenLine’s first client in the mining sector.

Speaking to businessline, GreenLine CEO Anand Mimani said “Decarbonising road logistics is a mission which every Indian corporate is having. The way forward, with the growth in logistics at a CAGR of 10 per cent, if suitable actions are not taken to reduce carbon dioxide emission levels, it will be a concern.”

Decarbonising logistics

Corporates are now looking at reducing their carbon footprint, Mimani emphasised adding that LNG-powered trucking is the way forward. LNG emits 30 per cent less CO2, 100 per cent less Sulphur Oxides (Sox), 59 per cent less Nitrogen Oxides (NOx) and 91 per cent less Particulate Matter (PM).

HZL CEO Arun Mishra said “Deployment of LNG vehicles align with our approved SBTi targets to reduce 50 per cent of absolute Scope 1 and 2 GHG emissions and further reduction of 25 per cent of absolute Scope 3 GHG emissions by FY30 from the base year FY20.”

By introducing LNG vehicles, HZL is not just showcasing its commitment towards decarbonising Indian mining but also paving the way for a transport revolution. This is yet another step towards HZL’s vision of net-zero by 2050 or sooner, and the company looks forward to scaling this up in the coming months, he added.

Rising interest

Mimani said “Our LNG-powered HCVs are the future of freight transportation in India, enabling decarbonisation of logistics. We are in advanced discussions with many leading corporates and expect to announce new deployments very soon.”

GreenLine clients include Dalmia Cement, UltraTech Cement, JK Lakshmi Cement, Tata Steel, Jindal Steel & Power (JSPL) and Nestle. It is also in discussions with other FMCG and automobile players.

An LNG truck typically costs around ₹85 lakhs on ground with the trailer including insurance, RTO, road tax, etc. The 55-tonne vehicle with a full tank of LNG, which is around 390-400 kg, travels for about 1,200-1,400 km based on terrain and load. LNG offers better mileage compared to diesel by 20 per cent, which results in better operating costs.

GreenLine, which operates India’s largest fleet of LNG-fired heavy commercial vehicles (HCVs), has deployed about 160 vehicles. In October, it is targeting to add 30-35 vehicles and by December 2023, the company will scale it up to around 400-500 vehicles.

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