UPS is expanding its natural gas powered operations in the U.S. with plans to build an additional 12 compressed natural gas (CNG) fueling stations and add 380 new CNG tractors. The CNG fueling stations and vehicle purchases totaling $100 million are part of UPS’s ongoing commitment to diversify its fuel sources and reduce its environmental impact.
“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,” said Mark Wallace, UPS senior vice president global engineering and sustainability. “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.”
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.
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 Fuel Systems (an NGV Global Sponsor), designer and producer of natural gas fuel storage and delivery systems for heavy duty trucks and buses, has received an order from UPS for new Behind-the-Cab CNG fuel systems for delivery in the third quarter of 2016. These 700 mile range systems, incorporating enhanced 27-inch Hexagon Composites tanks, will be delivered out of Agility’s new manufacturing facility in Salisbury, North Carolina. Quantum Fuel Systems will also provide CNG storage systems.
The UPS 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 percent by 2020.
(Sources: UPS; Agility Fuel Systems)