Package-hauling giant UPS signed an agreement with Big Ox Energy to purchase 10 million gallon equivalents of renewable natural gas per year. UPS said this is the company’s largest investment in RNG to date.
The purchase agreement runs through 2024. UPS said use of RNG yields up to a 90% reduction in lifecycle greenhouse gas emissions when compared to conventional diesel.
In addition to the Big Ox deal, UPS signed a five-year agreement earlier this year with AMP energy for 1.5 million gallon equivalents of RNG per year from the Fair Oaks dairy farm in Indiana.
UPS said these RNG agreements will help it reach “a key sustainability goal” of attaining 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,” said Mike Casteel, UPS director of fleet procurement. “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.”
UPS fueling stations in Lexington, Kentucky; Louisville, Kentucky.; New Stanton, Pennsylvania; Richmond, Virginia; Roanoke, Virginia; West Columbia, South Carolina; Horsham, Pennsylvania, and Doraville, Georgia, will use the Bix Ox RNG to fuel UPS delivery vehicles and tractors.
“UPS continues to make investments in renewable natural gas that help move the industry forward,” said Rob Larsen, CEO of Big Ox Energy. “Our agreement with UPS is one of the largest contracts we have signed to date and among the largest ever in the RNG market.”
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.