Hydrogen for long haul, EVs for short: CJ Darcl on India’s logistics fuel future

India’s logistics sector is going through a major transformation, with alternative fuels and digitisation at the forefront. Nikhil Agarwal, President of CJ Darcl Logistics, discusses the promise and limitations of liquefied natural gas, electric vehicles and hydrogen in logistics. He also stated that the company is supporting small fleet operators and revealed the intended deployment of its newly infused $32 million investments. 

He also elaborated that they are still in the exploration phase. These technologies are emerging and a lot of pilots are happening across the sector. He also stated that they break the logistics industry into two: local/intracity and long-haul freight. 

He briefed about how original equipment manufacturers have just started launching 55-tonne LNG trucks. Some are still testing. Also, LNG fuel infrastructure, like pump networks, is just now being rolled out across the country. Over the last three-four months, we’ve talking extensively with fuel suppliers and OEMs. So, the space is exciting but everyone is figuring out. 

While talking about the EVs, he stated that EVs will likely be limited to short-haul applications unless the battery prices drop significantly. Although LNG vehicles cost nearly twice as much as diesel ones and EVs can cost up to four times more.

As for the transport, hydrogen is flammable and expensive to move, but that comes later in the journey. First, the product and fuel eco-system needs to mature. Once there’s traction, they will step in as operators to move the fuel safely.