UPS has significantly increased its commitment to use renewable natural gas by agreeing to purchase 170 million gallon equivalents of Redeem RNG from Clean Energy Fuels through 2026.
Clean Energy Fuels, which produces renewable natural gas and natural gas fuel systems and products for commercial vehicles, says it is the largest commitment to RNG of any U.S. company. The seven-year commitment would average 22.5 to 25 million gallon equivalents per year for the delivery service giant.
Since 2014, UPS has used more than 28 million gallon equivalents of RNG in its ground fleet. The move supports UPS’s goal of reducing the absolute greenhouse gas emissions of its ground fleet 12% by the 2025. Clean energy estimates that by replacing diesel fuel with RNG, UPS could reduce emissions by as much as 1,074,000 metric tons over the life of the agreement, the equivalent to removing 228,000 cars off the road.
“Since RNG is supported by existing national infrastructure used to transport natural gas, it’s a winning solution that will help UPS to reach our ambitious sustainability goals,” said Mike Casteel, UPS director of fleet procurement. “At the same time, we hope our unprecedented seven-year commitment serves as a catalyst for wider adoption of RNG by other companies.”
RNG, also known as biomethane, differs from traditional sources of natural gas because it is derived from renewable sources such as decomposing organic waste in landfills, wastewater treatment and agriculture. It is then distributed through the natural gas pipeline and made available as either liquefied natural gas or compressed natural gas.
The UPS fleet has more than 6,100 CNG and LNG vehicles that can be powered by RNG in countries around the globe. In the U.S., UPS fueling stations in Albuquerque, New Mexico; Atlanta, Georgia; Chattanooga, Tennessee; Commerce City, Colorado; El Paso, Texas; Fort Worth, Texas; Kansas City, Kansas; New Orleans, Louisiana; Oklahoma City, Oklahoma; Omaha, Nebraska; Phoenix, Arizona; Port Allen, Louisiana; Salt Lake City, Utah; San Antonio, Texas; Shreveport, Louisiana; Sparks, Nevada; Tifton, Georgia; and, Trinidad, Colorado, will use the RNG from Clean Energy to operate UPS delivery vehicles.
“We’re excited to deliver Redeem to a partner with a substantial alternative fleet and an ongoing commitment to RNG,” said Tyler Henn, vice president and general manager of Clean Energy Renewables, a division of Clean Energy. “We’re pleased to be able to fulfill the growing demand for RNG as more fleets seek a clean, economical alternative.”