Green Logistics: The Next Frontier in the Oil & Gas Sector

In an exclusive interaction with Thiruamuthan, Senior Correspondent at Industry Outlook, Kartik Iyer, Vice President – Supply Chain & Sales Support at Total Energies India, shares insights on how India’s green logistics momentum is driving innovation in sustainable transport. He highlights the role of electrification, CNG adoption, and biofuel-based logistics in transforming supply chains and fostering cleaner transport solutions. Kartik is a seasoned supply chain and operations expert with over 17 years of global experience across procurement, logistics, and strategic planning. He is widely recognized for his excellence in supplier negotiations, strong leadership abilities, and his consistent drive toward customer-focused and impactful operational strategies.

As oil and gas companies face rising climate obligations, what practical green logistics solutions are being adopted to reduce emissions in transportation and storage operations?

When focusing on green logistics or reducing carbon emissions, there are two primary approaches. One centers on implementing green logistics solutions, while the other involves reducing fuel consumption and improving waste management.

Focusing on green logistics specifically, the current landscape in India presents various opportunities, although infrastructure development is still underway. For example, the electrification of fleets is gradually increasing. A growing number of two-wheelers and four-wheelers are being electrified, particularly within urban areas. However, most of these electric vehicles (EVs) are still limited to city use due to their limited range.

Larger electric vehicles, and those with capacities of 20, 30, or even 40 metric tons, are beginning to emerge, but their operating range remains relatively short. As a result, these vehicles are generally restricted to intra-city or short-haul transport and require accessible charging infrastructure to operate effectively.

Another viable alternative is the use of Compressed Natural Gas (CNG) vehicles. Due to the limitations of tank capacity, CNG-powered vehicles are not ideal for long-distance transportation. Nevertheless, they are suitable for last-mile deliveries, much like electric vehicles.

Intermodal transportation is another key element in green logistics. This involves shifting freight from road to rail or sea transport, which are significantly lower in carbon emissions. For example, when using rail transport, approximately 70–80 percent of the journey can be electrified, contributing further to reduced emissions.

Additionally, there is a growing adoption of energy-efficient warehousing. These facilities are designed to be self-sustainable, often incorporating solar panels, LED lighting, smart HVAC systems, and water recycling systems to minimize environmental impact.

Other sustainable fuel alternatives include biofuels, liquefied natural gas (LNG), biodiesel, renewable diesel, and ethanol-blended diesel.

Beyond these technological and infrastructure-focused solutions, operational efficiencies also play a role. Route optimization, for instance, helps minimize fuel consumption by enabling multiple deliveries in a single trip and consolidating loads, thereby improving overall efficiency and reducing emissions.

Leader's Thoughts: Green Logistics 2025: Driving Innovation with Hyperlocal Logistics

As ethanol blending and bioenergy adoption accelerates, how are these shifts shaping green logistics strategies for cleaner fuel transport in oil and gas supply chains?

As the adoption of renewable energy and bioenergy accelerates, oil and gas companies are implementing several green logistics strategies to support cleaner fuel transport. One key approach is the investment in dedicated biofuel transport fleets, with specialized tankers and trucks designed to handle ethanol and biodiesel, which require specific safety standards. Additionally, firms are establishing decentralized distribution hubs and regional blending terminals located closer to consumption areas to reduce transport distances and emissions. Multimodal transportation methods, such as rail and inland waterways, are also being adopted for their greater carbon efficiency compared to road transport. Supply chain digitization is enhancing efficiency through real-time tracking and automation, while collaborative logistics models are emerging as companies partner with agricultural and biofuel producers to share infrastructure and reduce environmental impact. Finally, many are retrofitting and repurposing existing infrastructure like pipelines and storage facilities to handle biofuels, minimizing the need for new construction and supporting a more sustainable transition within the energy supply chain.

As fossil-fuel-dependent regions shift to renewables, how can logistics strategies ensure workforce inclusion and greener transportation roles in oil industry transitions?

To support the oil and gas industry's transition toward sustainability, it is essential to ensure workforce inclusion and promote green transportation routes. This can be achieved through comprehensive re-skilling and up-skilling programs that prepare logistics workers for roles in electric vehicle (EV) maintenance, renewable fuel handling, and digital logistics tools. Inclusive hiring practices that prioritize local talent and create diverse employment pipelines for green transportation roles are equally important. Establishing green transport hubs and regional logistics centers powered by renewable energy can serve as both operational bases and training grounds. Additionally, public-private workforce initiatives involving collaboration with governments and educational institutions can fund apprenticeships and certifications in sustainable logistics. Creating clear job transition pathways from traditional roles, such as fuel truck drivers, to green jobs like hydrogen fuel delivery or EV charging station management further supports this shift. Underpinning all these efforts is the need for digital inclusion, which ensures that workers are equipped with the tools and knowledge to thrive in a digitized, sustainable logistics ecosystem.

Also Read: Gadkari Seeks 5% GST on Crude Ethanol to Boost Flex-Fuel Vehicles

Looking ahead to India’s 2040 oil reduction target, what emerging green logistics innovations and policy shifts could most effectively drive sustainability in oil operations?

India has set ambitious climate goals, aiming for significant carbon reductions by 2040 and achieving carbon neutrality by 2070. To support these targets, the country is pursuing several innovations and policy shifts, particularly in the energy and logistics sectors. One of the major technological efforts underway is the electrification of oil operations. India is working toward 100 percent electrification of all installation rigs, utilizing dual gas-based systems to ensure cleaner energy usage in upstream activities. In parallel, there is a strong governmental push to integrate biofuels into the energy mix. Bioethanol is being expanded across the logistics sector, supported by policies that aim to increase its share in blended fuels. Compressed biogas is also receiving attention, with a focus on developing the specialized logistics infrastructure required for its transport and storage.

Green hydrogen is another major priority. India is targeting the development of approximately 45 kilotons per year of green hydrogen production capacity. This includes the promotion of infrastructure to support hydrogen transportation and ensure safety. While other forms of hydrogen, such as blue and grey, remain part of the broader hydrogen strategy, the government is giving clear priority to green hydrogen development. Carbon capture, utilization, and storage (CCUS) projects are also being piloted. These initiatives aim to capture and store carbon dioxide emissions, requiring new logistics systems to handle CO₂ transportation and injection. Simultaneously, renewable energy capacity is expanding rapidly. Wind and solar power projects are growing across the country, contributing to the generation of greener fuels and helping to reduce the carbon footprint of the power sector.

To support these technological changes, policy reforms are playing a critical role. The National Green Hydrogen Mission is a key initiative that promotes the creation of infrastructure for hydrogen production, storage, and distribution. 

Another important policy direction involves the creation of green freight corridors. These corridors aim to reduce emissions from freight movement by increasing the use of railways and inland waterways. The government is also providing incentives for the adoption of electric and hybrid vehicle fleets, including subsidies and tax benefits for logistics companies.

Looking forward, carbon pricing mechanisms and ESG (Environmental, Social, and Governance) mandates are expected to encourage oil companies and other industrial players to invest in low-carbon logistics and to report transport emissions transparently. In addition to these efforts, there is increasing focus on the use of re-refined base oils for lubricants and recycled plastics in packaging materials. These initiatives underscore a broader strategy centered on reuse, the adoption of green and cleaner fuels, and sustainable industrial practices. Taken together, these technological advancements and comprehensive policy measures illustrate India’s multi-faceted approach to reducing emissions. This integrated strategy is essential for achieving the country’s interim climate goals and ultimately reaching carbon neutrality by 2070.