Increasing Demand From Heavy Duty Vehicles
Liquified Natural Gas is gaining significant popularity as a viable alternative fuel for various types of heavy-duty vehicles such as trucks and buses. The use of LNG in vehicles is contributing substantially towards reducing the environmental impact when compared with other types of fuels such as coal and diesel. This fuel also offers economic benefits to the consumers due to the stability in its prices when compared to fluctuating oil prices. This factor is one of the key contributors in the escalating demand of LNG as a transportation fuel.
The increasing emphasis on decarbonizing the transportation sector is anticipated to play a crucial role in flourishing the market of LNG in Asia pacific region. The intercity road transport represents around 65% of the 1600 crore logistics market of India, with around 2.5 lakhs trucks sold every year in the country. Thus, decarbonizing this section of the transportation industry will be very vital for the country to achieve its Net Zero ambition.
Also, various companies are shifting towards using LNG vehicles in their fleet, for instance, companies such as Nestle, Dalmia Cements and Ultratech have started using LNG trucks in their fleets for meeting their ESG (Environmental, social and governance) targets. Moreover, with the increasing advancements in automobile industry, the focus on developing LNG based vehicles is also propelling, for instance, in September 2022, Blue Energy Motors launched India’s first Liquefied Natural Gas (LNG) fueled green truck at its plant in Pune.
Thus, the growing availability of LNG based vehicles in the market will lead to an increasing demand for LNG from the automobile industry.
High Demand For Liquefied Natural Gas (Lng) From Transportation And Power Sectors
The market of small scale liquified natural gas is expected to experience considerable growth in the coming years. It is a clean burning fuel when compared with oil and coal, emitting very few pollutants. The increasing problem of air pollution and its harmful and negative impacts on environment and humans is driving the need for fuels such as LNG for enhancing the quality of air and mitigating the climate changes. The abundance of natural gas reserves in various parts of Asia Pacific is encouraging its adoption in energy and transportation industries.
The energy security offered by LNG by reducing the dependency on imported coal and oil has encouraged various Asia Pacific countries to shift towards LNG usage. Another important aspect that is contributing towards the accelerating demand of LNG is its cost effectiveness. Its transportation cost is less as compared to the transportation cost of natural gas that is transported via pipelines. Also, the technological advanced happened in LNG industry has improved its efficiency along with reducing the cost which is further making LNG more competitive in the market.
LNG is playing a crucial role in the transition towards low carbon energy future by limiting the emission of carbon dioxide.
Integration Of Technologies And Government Policies
The market of small scale LNG is witnessing significant technological advancements which are revolutionizing this industry in various aspects, further leading to the creation of new opportunities for the growth of the industry. Limiting carbon emissions is a key focus in the LNG industry, and cryogenic carbon capture is emerging as a promising solution. This innovation involves capturing and liquefying the carbon dioxide from flue gas, which can be stored or repurposed. The advantages offered by this innovation include significant reduction in greenhouse gas emissions, additional revenue stream through the sale of captured carbon dioxide and enhanced operational efficiency.
Also, innovations in liquefaction technologies have played an important role in increasing the efficiency of LNG production along with reducing energy consumption and emissions. The introduction of high-efficiency compressors and modular designs have made the liquefaction plants more flexible and cost-effective, making the smaller-scale operations more efficient. Advancements in shipping of LNG are also playing a crucial role in making the supply chain of LNG more effective and efficient. One of the significant factors contributing to the evolution of LNG shipping is the development of advanced propulsion systems.
Traditional vessels use steam turbines or dual-fuel engines, but these technologies have limitations in terms of emissions and efficiency. New technologies, such as fuel cells and gas turbines have led to revolutionary transformation owing to the benefits offered by them. Gas turbines offer advantages in terms of efficiency and environmental impact as these turbines can achieve high power outputs and can offer greater flexibility in terms of fuel options. Furthermore, fuel cell technology has the potential to revolutionize LNG shipping by providing an efficient and emission-free propulsion.
These cells generate electricity through an electrochemical process, which helps in reducing greenhouse gas emissions to almost zero.
