Natural Gas: India's Under-appreciated Clean Fuel

We are all focused on electric cars and Hydrogen trucks to fight climate change, but are we ignoring a better option already here? Natural gas (CNG and LNG) is cleaner and cheaper for India's transportation. Let's give it a second look!

The Passenger Vehicle Scenario

Natural Gas, consumed in India as CNG and more lately as LNG has always been seen as the fuel for Public Transportation. CNG is way cheaper than gasoline (petrol) for cars (Rs. 2.5/km vs Rs. 6+ for Petrol hatchbacks) and there are just as many CNG stations now. But many people still see CNG as a fuel for budget vehicles, even though it's a better option for the environment and your wallet.

This perception divide has been perpetuated by the leading car companies. CNG is offered only on their cheaper cars, on lower variants and in Manual transmissions only. CNG after all is the “struggler’s” and penny-pincher’s fuel of choice. It lacks the glamour of a BEV or HEV vehicle. Tata Motors is perhaps the only brand that has made some effort to democratise CNG.

Tata Motors now offers CNG on higher variants of its vehicles as well as with AMT transmissions. They have also patented an innovative double cylinder system that allows for a capacious boot space. The latest Tata CNG offerings offer a driving experience at par with the Petrol equivalents. While the Central Government does it’s part to encourage CNG through administering the prices of CNG fuel, it is necessary for state governments to also promote wider usage with concessions for CNG vehicles.

Long Distance Trucking and Buses

Long distance trucks and buses are one area where BEVs, HEVs or Hydrogen Power are unlikely to be cost competitive, practical or technically wide-spread in India for the next decade. Hence, greater emphasis is needed by the Government on adoption of natural gas for medium and heavy trucks. Globally, heavy duty trucks constitute only 1 per cent of total vehicles, but accounts for ~23 percent of global transport emissions. While India-specific data is scarce, it is safe to assume, given the poor maintenance, high mileage and rampant overloading of trucks in India, medium and heavy duty trucks account for well over ~23 percent of transport emissions.

Nearly 70 percent of the medium and heavy-duty trucks are used in long-haul transportation. While CNG cannot be used for long-haul transportation, LNG with a driving range of 600-1000 kms in a single fill is an ideal candidate. Natural gas has 30 percent lower CO2 emissions, 90 percent lower NOX and Particulate Matter emissions and Zero SOX emissions as compared to current Diesel trucks. LNG offers the added advantage of being pilfer-proof as it is stored at -160 degrees C. Existing diesel fleets can easily be retrofitted to use LNG. Despite higher initial costs, LNG trucks are cheaper to run than Diesel in less than 3 years assuming annual running of 85,000 kms per vehicle.

The good news is that cement companies like Dalmia Cements and Ultratech have started inducting LNG trucks in their fleet to meet their ESG targets. However, such initiatives are few and far in between, with most being pilots. Blue Energy Motors which runs these trucks recently achieved a 1 crore kilometres cumulative running milestone. The company thus prevented over 3000 tonnes of CO2 emissions, equivalent to the yearly CO2 absorption by 1.2 lakh mature trees.

While LNG can be cheaper than diesel in the long run due to fuel efficiency, the initial cost of LNG trucks and the infrastructure needed to support them can be higher. LNG trucks are great for the environment but expensive upfront. The government needs to step in by:

• Building more LNG stations along major highways.
• Offering incentives for companies to switch to LNG trucks.
• Promote investments in better technology for LNG trucks (like cheaper tanks).

This will encourage both the auto industry and trucking companies to adopt LNG, creating a win-win for the environment and wallets. There is an urgent need to have a specified timeline by the PSU fuel companies to ensure the availability of LNG stations along the Golden Quadrilateral and North – South corridors to ensure that the auto industry is not caught in the proverbial chicken or egg quandary.

In conclusion: ?

China, the EU and the US are way ahead of India in using clean-burning natural gas trucks. China already had 578,000 LNG Heavy Duty trucks operating in 2020. India needs a clear plan from the government to catch up, including:

• Stable fuel prices for natural gas
• Expanding the network of new CNG and LNG filling stations
• Incentives for manufacturing and buying LNG trucks as well as retrofitting old Diesel trucks to LNG.

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