UPS Makes Largest Purchase Of Renewable Natural Gas Ever In The U.S.
May 22 2019 - 8:30AM
UPS (NYSE: UPS) today announced an agreement with Clean Energy
Fuels Corp. (NASDAQ: CLNE) to purchase 170 million gallon
equivalents of renewable natural gas (RNG) through 2026. This is
the largest commitment for use of RNG to date by any company in the
United States, with a range of 22.5 - 25 million gallon equivalents
per year. RNG is a key part of UPS’s strategy to increase
alternative fuel consumption to be 40% of total ground fuel
purchases by 2025, supporting the logistics leader’s efforts to
reduce the absolute greenhouse gas (GHG) emissions of its ground
fleet 12% by 2025.
“The world
has a trash problem. And the world has an emissions problem.
Renewable natural gas, produced naturally from bio sources such as
landfills and dairy farms, not only turns trash to gas, but it
turns it into clean gas,” said Mike Casteel, UPS director of fleet
procurement. “Since RNG is supported by existing national
infrastructure used to transport natural gas, it’s a winning
solution that will help UPS to reach our ambitious sustainability
goals. At the same time, we hope our unprecedented seven-year
commitment serves as a catalyst for wider adoption of RNG by other
companies.”
UPS has used more than 28 million gallons of RNG in its ground
fleet since 2014. This means the company will now be using nearly
as much RNG in one year as it has used over the past five years
combined. By switching from diesel fuel to RNG, UPS vehicles
fueling at 18 company-owned and operated natural gas stations
across 12 states will realize a significant reduction in greenhouse
gas emissions, as much as 1,074,000 metric tons of GHG over the
life of the agreement. This is equivalent to planting 17,000,000
trees, removing 228,000 cars off the road or recycling 374,000 tons
of waste that would otherwise be sent to the landfill.
UPS fueling stations in Albuquerque, N.M.; Atlanta, Ga.;
Chattanooga, Tenn.; Commerce City, Colo.; El Paso, Texas; Fort
Worth, Texas; Kansas City, Kan.; New Orleans, La.; Oklahoma
City, Okla.; Omaha, Neb.; Phoenix, Ariz.; Port Allen, La.;
Salt Lake City, Utah; San Antonio, Texas; Shreveport, La.;
Sparks, Nev.; Tifton, Ga.; and, Trinidad, Colo., will use the RNG
from Clean Energy to operate UPS delivery vehicles.
Clean Energy, co-founded by T. Boone Pickens and Clean Energy
President and CEO Andrew J. Littlefair, is the exclusive provider
of Redeem™ RNG, the first RNG made available in commercial
quantities. According to Clean Energy, Redeem™ RNG yields at least
a 70% reduction1 in lifecycle greenhouse gas emissions when
compared to conventional diesel or gasoline. Also known as
biomethane, RNG 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).
“Together, UPS and Clean Energy are moving the industry forward and
toward a nation of energy independence by pushing for RNG at
scale,” said Tyler Henn, vice president and general manager of
Clean Energy Renewables, a division of Clean Energy. “We’re excited
to deliver Redeem to a partner with a substantial alternative fleet
and an ongoing commitment to RNG. We’re pleased to be able to
fulfill the growing demand for RNG as more fleets seek a clean,
economical alternative.”
UPS drives more than 6,100 CNG and LNG vehicles which can be
powered by RNG in Argentina, Belgium, Canada, France, Germany, the
Netherlands, Thailand, the United Kingdom, and the United States.
More than 22% of the conventional diesel and gasoline fuel
previously used by UPS’s ground fleet is now being replaced by
alternative fuels including renewable natural gas and renewable
diesel. This is significant because of RNG’s staggering reduction
in lifecycle greenhouse gas emissions when compared to conventional
diesel.
Since 2009, UPS has invested more than $1 billion in alternative
fuel and advanced technology vehicles and fueling stations
globally. UPS deploys the more than 10,000 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 Seattle,
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.
For more information on UPS’s sustainability initiatives, please
visit www.ups.com/sustainability.
1 Based on weighted average carbon index of Clean Energy’s fuel
supply as approved by California Air Resources Board (CARB)
About UPS
UPS (NYSE: UPS) is a global leader in logistics, offering a
broad range of solutions including 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.
Headquartered in Atlanta, UPS serves more than 220 countries and
territories worldwide. UPS was awarded America’s Best Customer
Service company for Shipping and Delivery services by Newsweek
magazine; Fortune magazine’s Most Valuable Brand in Transportation;
and top rankings on the JUST 100 list for social responsibility,
the Dow Jones Sustainability World Index, and the Harris Poll
Reputation Quotient, among other prestigious rankings and awards.
The company can be found on the web at ups.com or pressroom.ups.com
and its corporate blog can be found at longitudes.ups.com. The
company’s sustainability eNewsletter, UPS Horizons, can be
found at ups.com/sustainabilitynewsletter. Learn more about
our sustainability efforts at ups.com/sustainability. To get UPS
news direct, follow @UPS_News on Twitter.
Kristen Petrella
404-828-4182
kpetrella@ups.com
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