GreenLine to invest Rs 5,000 cr to acquire LNG trucks for green logistics

The Mint

Green mobility solutions provider GreenLine is planning a big-ticket expansion of its two-year-old logistics services operations, investing about Rs 850 crore to add 1,000 liquefied natural gas (LNG) trucks to its fleet in this financial year.

It will further invest over Rs 4,000 crore in FY25 to raise LNG truck deployment by any another 5,000 units, while also exploring options for deploying electric trucks on short-haul operations.

The company, part of the Essar Group, aims to decarbonize heavy trucking in India and is receiving widespread interest for its LNG-powered freight transportation from industrial players and corporates who themselves are moving ahead on their environmental, social, and governance (ESG) vision and looking at scaling up greener initiatives.

“We are already running about 250 LNG-powered trucks that are managing logistics operations of our clients and plan to deploy 1,000 LNG-powered trucks by March 2024 making an investment of about Rs 85 lakh for each truck,” GreenLine CEO Anand Mimani told Mint.

He added that these numbers may go up by another 5,000 trucks by FY25. “The plan for a second round of fleet expansion would be worked out only after we reach initial milestone of scaling up green truck deployment by March next year,” Mimani said.

At an average investment of about Rs 85 lakh per truck (on-road price), the total investment for acquiring a fleet of 6,000 LNG trucks works out to over Rs 5,000 crore. So far, fleet acquisition has been done through the company’s equity.

GreenLine’s fleet, comprising state-of-the-art LNG-powered trucks manufactured by Blue Energy Motors, it says, reduces carbon dioxide emissions by up to 30%, SOx (sulphur oxides) by up to 100%, NOx (nitrogen oxides) by up to 59%, CO (carbon monoxide) by up to 70% and particulate matter by up to 91%, thereby enabling immediate emissions reduction from road logistics operations of corporate India.

“Our vehicles have also reduced noise by 30% in comparison to a diesel vehicle. So, we have put up a brand new fleet of LNG trucks produced by our sister firm Blue Energy Motors (another Essar Green Mobility entity),” Mimani said.

He said the company has received positive response from its growing list of customers as reducing emission is very important for their balance sheets and investor relation portfolios as well.

Customers who have come into GreenLine fold include Dalmia Cement, JK Lakshmi Cement, Nestle, Delhivery, JSW, and JSPL.

“We are making all our customers go green at no extra cost than diesel as of today’s prices. Long term, logistics costs will also get reduced. But the first idea is to decarbonise logistics and ensure that India goes green,” Mimani said.

The range of Blue Energy vehicles is 1,400 km in one fill. GreenLine is hoping that with its sister firm Ultra Gas and Energy putting up 10 LNG retail stations across India by the fiscal end, deployment of these trucks could be expanded.

Source: The Mint