UPS has announced it has entered into multi-year renewable natural gas (RNG) agreements with Kinetrex Energy and TruStar Energy. In total, over the next seven years, UPS has agreed to purchase 250m gallon equivalents (GEs) of RNG. The commitment includes a prior RNG contract in which UPS agreed to purchase 170m gallons of RNG as well as these two contracts, estimated to supply the company with up to 80m GEs of RNG.
The Kinetrex contract will supply UPS with up to 52.5m GEs of RNG over the life of the contract to be used in its tractor trailer vehicles throughout the Midwest. The RNG will be used to fuel UPS’s LNG-powered trucks in Chicago, Columbus, Indianapolis, St. Louis and Toledo. The TruStar Energy contract will supply UPS with up to 27.5m GEs of RNG over the life of the contract to be used in California. The RNG will be used to fuel UPS’s CNG-powered trucks in both Visalia and Moreno Valley, California.
“The use of RNG is an important part of UPS’s strategy to increase alternative fuel consumption to be 40% of total ground fuel purchases by 2025,” said Mike Whitlatch, vice president of global energy and procurement, UPS. “We are using both liquid natural gas (LNG) and compressed natural gas (CNG) as bridging fuels to increase our use of RNG. RNG yields up to a 90% reduction in lifecycle greenhouse gas emissions when compared to conventional diesel.”
UPS said that over the past ten years has invested more than $1bn in alternative fuel and advanced technology vehicles and fuelling stations to help meet its target of reducing absolute greenhouse gas (GHG) emissions by 12% across its global ground operations by 2025. Additionally, the company has also announced plans to purchase more than 6,000 natural gas-powered trucks through 2022. UPS said that this three-year commitment represents a $450m investment in expanding its alternative fuel and advanced technology vehicle fleet as well as supporting infrastructure.
Source: UPS
