UPS has signed an agreement with Clean Energy Fuels Corp. to purchase renewable natural gas (RNG) Redeem for some of its delivery fleet with the aim to drive one billion miles using alternative fuel by the end of 2017.
The company said the deal makes it the largest user of renewable natural gas in the shipping industry in the USA and highlighted its plan to significantly expand its use of renewable natural gas for its alternative fuel and advanced technology fleet.
With effect from this month, UPS will start using Redeem RNG for refueling its tractors and delivery vehicles at its fueling stations in Sacramento, Fresno and Los Angeles. UPS and Clean Energy Fuels Corp. estimate that the three stations will provide approximately 1.5 million gallon equivalents annually of RNG fuel to nearly 400 UPS CNG vehicles in California.
Redeem is the first RNG made available in commercial quantities. Also known as biomethane, it can be derived from many abundant and renewable sources, including decomposing organic waste in landfills, wastewater treatment and agriculture.
"Renewable natural gas is critical to our effort to minimise UPS's environmental impact while meeting the growing demand for our services," Mitch Nichols, UPS senior vice president of transportation and engineering, said. "Our rolling laboratory approach provides a unique opportunity for UPS to test different fuels and technologies. The RNG agreement will help mature the market for this promising alternative fuel. This commitment also positions UPS to use RNG in its extensive natural gas fleet which includes more than 2,500 medium and heavy duty vehicles."
Harrison Clay, Clean Energy Renewables president, commented: "This step by UPS sends a clear message that RNG is a viable, cost-effective alternative to traditional diesel. Redeem reduces environmental impact because it captures naturally occurring methane before it is released into the atmosphere as a greenhouse gas emission, turning that methane into a safe, useable fuel that displaces the diesel fuel, and its carbon emissions, that would otherwise be used."
UPS currently operates natural gas tractors on RNG in the UK through a partnership with Mercedes Benz. In addition to its growing commitment to RNG, the company uses several other alternative fuels and advanced technologies.
This latest deal with Clean Energy is part of UPS’s commitment to reducing emissions and dependence on fossil fuels while improving efficiency. It operates one of the largest private alternative fuel and advanced technology fleets in the USA with nearly 5,500 all-electric, hybrid electric, hydraulic hybrid, CNG, LNG, propane, biomethane and light-weight fuel-saving composite body vehicles.
Clean Energy Fuels Corp. is the leading provider of natural gas fuel for transportation in North America.
