UPS Dramatically Increases Use Of Renewable Natural Gas
November 20 2017 - 10:00AM
UPS Agreement for 10 Million Gallon Equivalents a
Year with Big Ox Energy is its Largest Commitment to Date
UPS (NYSE: UPS) today announced an agreement with Big Ox
Energy (a wholly owned subsidiary of Environmental Energy Capital
LLC) to purchase 10 million gallon equivalents of renewable natural
gas (RNG) per year. This is the largest investment in RNG to date
for the company, and the agreement runs through 2024. Use of RNG
yields up to a 90% reduction in lifecycle greenhouse gas emissions
when compared to conventional diesel.
In addition to the agreement with Big Ox, UPS signed a five-year
agreement earlier this year with AMP energy for 1.5 million gallon
equivalents of RNG per year from the Fair Oaks dairy farm in
Indiana. The RNG agreements will help UPS reach a key
sustainability goal: 40 percent of all ground transportation fleet
fuel from sources other than conventional gasoline and diesel by
2025.
“Natural gas is a proven alternative fuel to gasoline and diesel
and is a key building block for our goal to reduce greenhouse gas
emissions in our ground fleet,” said Mike Casteel, UPS
director of fleet procurement. “These agreements add significantly
to our investment in the use of RNG and will help put us on track
to nearly triple our annual use of RNG. They are also a direct
reflection of our ongoing commitment to help shape the renewable
natural gas industry.”
UPS fueling stations in Lexington, Ky.; Louisville, Ky.; New
Stanton, Pa.; Richmond, Va.; Roanoke, Va.; West Columbia, S.C.;
Horsham, Pa. and Doraville, Ga. will use the Bix Ox RNG to fuel
UPS® delivery vehicles and tractors.
RNG, also known as biomethane, can be derived from many abundant
and renewable sources, including decomposing organic waste in
landfills, wastewater treatment and agriculture. It is then
distributed through the natural gas pipeline system, making it
available for use as liquefied natural gas (LNG) or compressed
natural gas (CNG).
“UPS continues to make investments in renewable natural gas that
help move the industry forward,” said Rob Larsen, CEO of Big Ox
Energy. “Our agreement with UPS is one of the largest contracts we
have signed to date and among the largest ever in the RNG
market.”
UPS used 61 million gallons of natural gas in its ground fleet
in 2016, which included 4.6 million gallons of RNG and is on track
to use 14 million gallons of RNG in 2017. UPS drives more than
5,200 CNG and LNG vehicles in its fleet of alternative fuel and
advanced technology vehicles. Earlier this year, UPS announced a
more than $90 million investment in natural gas vehicles and
infrastructure. This investment included an additional six
compressed natural gas (CNG) fueling stations, 390 new CNG tractors
and terminal trucks, and 250 liquefied natural gas (LNG)
vehicles.
Since 2009, UPS has invested more than $750 million
in alternative fuel and advanced technology vehicles and fueling
stations globally. UPS deploys the more than 8,500 vehicles in its
Rolling Lab to utilize technologies that work best depending on the
needs of the delivery route. From old-fashioned pedal power and
electric-assisted bicycles in dense urban areas like London and
Hamburg to electric and hybrid electric vehicles in the U.S., and
natural gas, renewable natural gas and propane globally, UPS puts
sustainability innovation into action, all over the world.
About Big Ox EnergyBig Ox Energy’s mission is
to be a sustainable, scalable, and cost-competitive waste recycling
provider. Big Ox Energy converts organic waste from municipal
waste water facilities, agriculture, and food processing into
clean-burning, pipeline-grade, renewable natural gas, known as
“green gas, and other useful by-products.” Good for the economy,
the environment, and the industries it supports, “green gas” is a
renewable, domestic energy source.
About Environmental Energy Capital,
LLCEnvironmental Energy Capital LLC’s (EEC’s) mission is
to utilize private capital efficiently to build energy and
infrastructure projects that promote sustainability and address
energy, climate and environmental challenges. EEC’s initial
focus is on scaling the production of renewable natural gas by
developing, owning and operating facilities that create
biogas and other useful products from diverse organic waste
streams.
About UPSUPS (NYSE) is a global leader in
logistics, offering a broad range of solutions transporting
packages and freight; facilitating international trade, and
deploying advanced technology to more efficiently manage the world
of business. UPS is committed to operating more sustainably – for
customers, the environment and the communities we serve around the
world. Learn more about our efforts
at ups.com/sustainability. Headquartered in Atlanta, UPS
serves more than 220 countries and territories worldwide. The
company can be found on the web at ups.com and its corporate
blog can be found at longitudes.ups.com. To get UPS news
direct, follow @UPS_News on Twitter.
Kristen Petrella
404-828-4182
Kpetrella@ups.com
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