Logistics provider UPS has signed two multi-year renewable natural gas (RNG) agreements, one with Kinetrex Energy and the other with TruStar Energy.
The contracts will provide UPS with a combined volume of up to 80 million gallon equivalents (GEs) of RNG over the terms of the agreements.
“The use of RNG is a very 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 at UPS. “We are using both liquid natural gas (LNG) and compressed natural gas (CNG) as bridging fuels to increase our use of RNG. This will have a measurable impact as RNG yields up to a 90% reduction in lifecycle greenhouse gas emissions when compared to conventional diesel. Using RNG is what will ultimately help UPS meet its 2025 sustainability goals.”
Kinetrex will supply UPS with up to 52.5 million GEs of RNG to be used in its tractor trailer vehicles throughout the US Midwest. The RNG will be used to fuel UPS’ LNG-powered trucks in Chicago, Columbus, Indianapolis, St. Louis and Toledo.
Under the TruStar Energy contract, UPS will purchase up to 27.5 million GEs of RNG, to be used in California. The cleaner burning gas will be used to fuel UPS’ CNG-powered trucks in Visalia and Moreno Valley, California.
The two new agreements build on a prior RNG contract in which UPS agreed to purchase 170 million gallons of RNG from Clean Energy Fuels, which is the company’s biggest commitment to date. Over the next seven years, UPS has agreed to purchase 250 million GEs of RNG, making the logistics provider the largest consumer of RNG in the transportation industry.
Additionally, UPS recently announced plans to purchase over 6,000 natural gas-powered trucks by 2022. The three-year commitment, which represents a $450 million (€408.8 million) investment, will help expand the company’s alternative fuel and advanced technology vehicle fleet, as well as supporting infrastructure.
Over the past 10 years, UPS has invested more than $1 billion (€0.9 billion) in alternative fuel and advanced technology vehicles and fuelling stations to help meet its target of reducing absolute greenhouse gas emissions by 12% across its ground operations by 2025.