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UPS to invest $100M more in compressed natural gas, CNG vehicles and related infrastructure

16 March 2016

UPS plans to build an additional 12 compressed natural gas (CNG) fueling stations and add 380 new CNG tractors to its growing alternative fuel and advanced technology fleet. The CNG fueling stations and vehicle purchases totaling $100 million are part of UPS’ ongoing commitment to diversify its fuel sources and reduce its environmental impact.

UPS is working to meet its goal of logging one billion miles with its alternative fuel and advanced technology fleet by the end of 2017, using a Rolling Laboratory approach to determine the right alternative fuel solutions to meet the unique needs of route-specific driving environments.

UPS-natural-gas-infographic

At UPS, we own our fleet and our infrastructure. That allows us to invest for the long-term, rather than planning around near-term fluctuations in fuel pricing. CNG is part of a broad investment in a variety of alternative fuel vehicles. Taken together, all of our alternative fuel vehicles represent 6% of the more than 100,000 UPS global fleet, and have driven a 10% annual reduction in use of conventional fuel.

—Mark Wallace, UPS senior vice president global engineering and sustainability

CNG is made by compressing natural gas to less than one percent of the volume it occupies at standard atmospheric pressure. The use of natural gas reduces greenhouse gas emissions six to 11 percent, according to the US Department of Energy.

The 12 new CNG stations will be built by TruStar Energy in Amarillo, Texas; Chattanooga, Tenn.; Columbia, S.C.; El Paso, Texas; Fort Worth, Texas; Kansas City, Kan.; Phoenix, Ariz.; Reno, Nev.; San Antonio, Texas; Tifton, Ga.; Trinidad, Colo., and Willow Grove, Pa.

The new CNG tractors to be deployed in these cities will be manufactured by Kenworth. Agility and Quantum Fuel Systems will provide the CNG storage systems.

This investment builds on the company’s existing 18 CNG fueling stations in Alabama, California, Colorado, Georgia, Kansas, Kentucky, Louisiana, Oklahoma, Pennsylvania, Texas, Virginia and West Virginia and operates CNG vehicles in Germany, the Netherlands and Thailand.

UPS was one of the initial 13 leading companies to take the Obama Administration’s American Business Act on Climate Pledge, committing to reduce greenhouse gas emission intensity 20% by 2020.

UPS operates one of the largest private alternative fuel and advanced technology fleets in the U.S. Its fleet includes more than 6,840 all-electric, hybrid electric, hydraulic hybrid, CNG, LNG, propane and light-weight fuel-saving composite body vehicles.

March 16, 2016 in Fleets, Heavy-duty, Infrastructure, Natural Gas | Permalink | Comments (6)

Comments

Put aside the lower fuel cost and lower emissions. Gaseous Fuels ( in combination with Synthetic Lubricants ) have the potential of dramatically increasing engine longevity and reduced maintenance. Whilst those numbers might be proprietary it would be interesting none the less to see the savings.

pickens plan finally being realized is a good thing for big fleets. Building demand for a depressed commoditiy ng prices may actually rebound and still be more affordable then diesel. Add CNG engines to hybrid drive trains make them even more competivly priced then all electric or gasoline engines.

This is a smart strategy. Different, appropriate technologies used where they have the most advantage. There is no one solution but many different ones.

A nice interim solution while waiting for electric truck development.

Renewable natural gas, not fracking is key. Electrify in the cities.

This has a positive image spin as well as benefiting the bottom line. Individuals and corporations CAN do good AND do well.

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