UPS makes largest - Smart Energy Decisions

Energy Procurement, GHG Emissions, Industrial, Power Prices  -  November 27, 2017

UPS makes largest renewable natural gas investment

Global logistics company UPS has inked an agreement to purchase 10 million gallon equivalents of renewable natural gas per year through 2024, marking its largest investment to-date. 

Use of renewable natural gas, or RNG, yields up to a 90% reduction in lifecycle greenhouse gas emissions when compared to conventional diesel, according to a Nov. 20 statement from UPS. The company reached the agreement with waste recycling provider Big Ox Energy. 

On top of that agreement, UPS signed a separate five-year deal earlier in 2017 for 1.5 million gallon equivalents of RNG per year from the Fair Oaks dairy farm in Indiana. The RNG agreements will help UPS reach a key sustainability goal: 40% of all ground transportation fleet fuel from sources other than conventional gasoline and diesel by 2025.

"Natural gas is a proven alternative fuel to gasoline and diesel and is a key building block for our goal to reduce greenhouse gas emissions in our ground fleet," Mike Casteel, UPS director of fleet procurement, said in a statement. "These agreements add significantly to our investment in the use of RNG and will help put us on track to nearly triple our annual use of RNG. They are also a direct reflection of our ongoing commitment to help shape the renewable natural gas industry."

In March, UPS joined Wal-Mart Stores Inc., PepsiCo Inc. and others in accelerating their commitment to transitioning to low carbon fuel and related technologies in signing on to the new Sustainable Fuel Buyers Principles organized by global nonprofit BSR.

The company said its fueling stations in Lexington, Ky.; Louisville, Ky.; New Stanton, Pa.; Richmond, Va.; Roanoke, Va.; West Columbia, S.C.; Horsham, Pa. and Doraville, Ga. will use the Big Ox RNG to fuel UPS delivery vehicles and tractors.

RNG, also known as biomethane, can be derived from many abundant and renewable sources, including decomposing organic waste in landfills, wastewater treatment and agriculture. It is then distributed through the natural gas pipeline system, making it available for use as liquefied natural gas or compressed natural gas.

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