Package delivery giant UPS will purchase more than 6,000 natural gas-powered vehicles (NGVs) beginning in 2020, through 2022, Kallanish Energy reports.
This three-year commitment represents a $450 million investment in expanding the company’s alternative fuel and advanced technology vehicle fleet, as well as supporting infrastructure, according to the company.
Roughly 25% of vehicles purchased by UPS in 2020 will run on alternative fuels, said Juan Perez, chief information and engineering officer with UPS.
The new vehicles will be equipped with compressed natural gas (CNG) fuel systems provided under an agreement with Agility Fuel Solutions, a provider of clean fuel solutions for medium- and heavy-duty commercial vehicles.
As of October 2019, UPS has agreed to purchase 230-million-gallon-equivalents of RNG (renewable natural gas) over the next seven years, making the company the largest consumer of RNG in the transportation industry.
Produced from landfills, dairy farms and other bio sources, RNG yields up to a 90% reduction in lifecycle greenhouse gas emissions when compared to conventional diesel.
Vehicles equipped with CNG fuel systems can interchangeably use RNG and conventional natural gas.
Since 2016, Agility Fuel Solutions has provided natural gas fuel storage and delivery systems to more than 1,700 UPS trucks, according to the company.
Over the past decade, UPS has invested more than $1 billion in alternative fuel and advanced technology vehicles and fueling stations to help meet its target of reducing absolute greenhouse gas emissions by 12% across its global ground operations by 2025.
UPS has continued its relationship with TruStar Energy to design, manufacture and install five new CNG fueling stations in Lathrop, Visalia and Moreno Valley, California, Houston, Texas, and Cleveland, Ohio.
UPS will deploy the new CNG vehicles on routes to utilize the new CNG stations as well as adding to existing natural gas fleets in other UPS locations.
By the end of 2019, UPS will be operating 61 natural gas fueling stations located across the U.S., and outside the U.S. in Vancouver, Canada, and Tamworth, UK, the company said.
This post appeared first on Kallanish Energy News.