UPS to invest more than additional $90M in natural gas vehicles and infrastructure; 6 new CNG stations, 440 vehicles
16 March 2017
UPS plans to build an additional six compressed natural gas (CNG) fueling stations and add 390 new CNG tractors and terminal trucks and 50 liquefied natural gas (LNG) vehicles to its alternative fuel and advanced technology fleet. UPS further cements its leadership in the alternative fuel market while continuing to reduce its environmental footprint with this more than $90 million investment in natural gas.
UPS has deployed more than 4,400 natural gas vehicles and a network of fueling stations, said Mark Wallace, UPS senior vice president global engineering and sustainability. In 2016, UPS used more than 61 million gallons of natural gas in its ground fleet, which included 4.6 million gallons of renewable natural gas. The resulting decrease in the use of conventional gas and diesel decreased CO2 emissions by 100,000 metric tons, he said.
The six new CNG stations will be built in Ontario, Calif.; Orlando, Fla.; Salina, Kan.; Louisville, Ky.; Greensboro, N.C; and Vancouver, B.C. Renewable natural gas (RNG) will be used at the station in Ontario to fuel UPS vehicles in the area with renewable compressed natural gas (RCNG).
In 2016, UPS invested $100 million in CNG fueling stations and vehicles. UPS currently operates 31 CNG fueling stations in Alabama, Arizona, California, Colorado, Georgia, Kansas, Kentucky, Louisiana, Nevada, Oklahoma, Pennsylvania, Texas, Virginia, Tennessee, and West Virginia and runs CNG vehicles in 38 states in the U.S. in addition to vehicles in Germany, the Netherlands and Thailand.
The use of natural gas reduces greenhouse gas emissions six to 11 percent, according to the US Department of Energy.
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 (LNG) or compressed natural gas (CNG).
UPS also purchased 50 additional LNG vehicles that were deployed in Indianapolis, Ind.; Chicago, Ill.; Earth City, Mo.; and Nashville, Tenn., where UPS has existing LNG stations.
The company has driven more than one billion miles since 2000 with its alternative fuel and advanced technology fleet. Through its Rolling Laboratory, UPS uses a research-based approach to determine the right alternative fuel solutions for the location, route and driving environments.
Since 2009, UPS has invested more than $750 million in alternative fuel and advanced technology vehicles and fueling stations globally. UPS deploys the more than 8,100 vehicles in the Rolling Lab to determine what works best in each situation.
Natural gas as a vehicle fuel does not matter at all. It is less than 15,000 barrels per day in oil equivalents. For comparison, diesel and gasoline is 13 million barrels per day in the US. Problem is that handling gas is too expensive. Maintenance cost of high pressure gas tanks is a show stopper for viable vehicle applications.
However, natural gas that is now predominantly produced by shale wells in the US is inexpensive at 3 usd per mBTU compared to 9 USD per mbtu for oil. It will be used more for electricity production in the USA for sure.
Posted by: Account Deleted | 16 March 2017 at 02:31 AM
It all adds up, to say it will not do it all is missing the point. UPS, FedEx and others can do better, we make progress one step at a time.
Posted by: SJC | 16 March 2017 at 06:46 AM
No it does not add up. They have been at it for 20 years with natural gas vehicles and noting meaningful has happened. Nothing at all. What part of less than 15,000 barrels per day in oil equivalents and diesel and gasoline is 13 million barrels per day in the US did you not get?
Posted by: Account Deleted | 16 March 2017 at 07:09 AM
There is less black smoke coming out of UPS trucks in the morning, that is good.
Posted by: SJC | 18 March 2017 at 11:37 AM