UPS plans to invest approximately $50 million to build an additional nine liquefied natural gas fueling stations, bringing the total number of stations to 13. Four were announced in April, and all should be operational by the end of 2014.
The enhanced LNG fueling infrastructure will support the operation of approximately 1,000 UPS LNG tractors that will displace more than 24 million gallons of diesel fuel annually. UPS has used LNG vehicles for more than a decade and says it has benefited from lower fuel prices compared to imported petroleum.
The expansion will include on-site fueling stations in Florida, Illinois, Indiana, Mississippi, Missouri, Ohio, Pennsylvania and Texas. Construction is already underway at previously-announced UPS facilities in Tennessee and Texas. Currently, UPS operates LNG tractors in Las Vegas, Nev., Phoenix, Ariz., Beaver and Salt Lake City, Utah, and, Ontario, Calif. UPS began using LNG tractors in its delivery fleet in 2002.
“Building these fueling stations is a solid future investment for UPS,” said David Abney, UPS chief operating officer. “By 2017, our goal is to reach one billion miles driven by our alternative fuel and advanced technology fleet. To accomplish this goal the company must continue to innovate and help pave the way toward more sustainable transportation solutions.”
UPS says it operates one of the largest private alternative fuel fleets in the industry with more than 2,700 alternative fuel and advanced technology vehicles. This includes all-electric, hybrid electric, hydraulic hybrid, CNG, LNG, liquid propane gas, biomethane, and light-weight fuel-saving composite body vehicles.
Between 2000 and the end of 2012, the UPS alternative fuel and advanced technology fleet logged 295 million miles. In 2012, the growing fleet drove 49 million miles, a 43% increase compared to 2011.