UPS, Clean Energy Announce Huge Renewable Fuels Deal

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UPS has announced an agreement with Clean Energy Fuels Corp. to purchase 170 million gallon equivalents of renewable natural gas (RNG) through 2026.

UPS claims this represents the largest commitment of RNG use to date by any company in the U.S. The agreement equates to a range of 22.5 million to 25 million gallon equivalents per year.

RNG is a key part of UPS’ strategy to increase alternative fuel consumption to 40% of total ground fuel purchases by 2025, supporting the logistics company’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,” says 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 new agreement 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/operated natural gas stations across 12 states will realize a significant reduction in GHG emissions – specifically, more than 1.07 million metric tons over the life of the agreement.

“Together, UPS and Clean Energy are moving the industry forward and toward a nation of energy independence by pushing for RNG at scale,” comments 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.”

The following UPS fueling locations will use Clean Energy’s Redeem RNG to operate delivery vehicles: Albuquerque, N.M.; Atlanta; Chattanooga, Tenn.; Commerce City, Colo.; El Paso, Texas; Fort Worth, Texas; Kansas City, Kan.; New Orleans; Oklahoma City; Omaha, Neb.; Phoenix; Port Allen, La.; Salt Lake City; San Antonio; Shreveport, La.; Sparks, Nev.; Tifton, Ga.; and Trinidad, Colo.

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