Agreement with Clean Energy Partners will help parcel delivery giant expand use of alternative fuel for its fleet.
UPS has signed an agreement to purchase renewable natural gas (RNG) for its delivery vehicle fleet from Newport Beach, California-based Clean Energy Fuels Corp. The deal signifies UPS's plan to significantly expand its use of renewable natural gas for its alternative fuel and advanced technology fleet. The company has a goal of driving one billion miles using its alternative fuel and advanced technology fleet by the end of 2017.
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Clean Energy Fuels, which provides natural gas fuel for transportation services, is the exclusive producer of Redeem, the first RNG made available in commercial quantities.
UPS fueling stations in Sacramento, Fresno and Los Angeles will use Redeem RNG for refueling tractors and delivery vehicles in UPS's fleet, beginning in May. UPS and Clean Energy Fuels Corp. estimate that the three stations will provide about 1.5 million gallon equivalents annually of RNG fuel to nearly 400 UPS compressed natural gas (CNG) vehicles in California.
RNG can be derived from many abundant and renewable sources, including decomposing organic waste in landfills, wastewater treatment and agriculture.
"Renewable natural gas is critical to our effort to minimize UPS's environmental impact while meeting the growing demand for our services," says Mitch Nichols, UPS senior vice president of transportation and engineering. "Our rolling laboratory approach provides a unique opportunity for UPS to test different fuels and technologies.
“Today's RNG agreement will help mature the market for this promising alternative fuel. This commitment also positions UPS to use RNG in its extensive natural gas fleet which includes more than 2,500 medium and heavy duty vehicles."
"This step by UPS sends a clear message that RNG is a viable, cost-effective alternative to traditional diesel," says Harrison Clay, Clean Energy Renewables president. "Redeem reduces environmental impact because it captures naturally occurring methane before it is released into the atmosphere as a greenhouse gas emission, turning that methane into a safe, useable fuel that displaces the diesel fuel, and its carbon emissions, that would otherwise be used."