ACT Expo 2017


UPS Spending $90m More on Natural Gas

March 15, 2017 in Biomethane, CNG, Companies, Fleet Order, Infrastructure, LNG, trucking by Rich Piellisch  |  No Comments

TruStar for Four New CNG Fueling Stations,
Freightliner & Kenworth for 440 New Trucks

UPS said today that it’s investing an additional $90 million in natural gas trucks and fueling infrastructure. The money will pay for 440 new compressed natural gas and liquefied natural gas trucks, and six new CNG fueling facilities.

UPS big rig with CNG-fueled Kenworth tractor



UPS expects to use RNG/renewable natural gas to fuel its new trucks in Ontario, Calif.

“With more than 4,400 natural gas vehicles and a network of fueling stations, UPS has had great results using natural gas as an alternative fuel in our fleet,” UPS senior global engineering and sustainability VP Mark Wallace says in today’s release.

61 Million Gallons in 2016

“We know the importance of investing in natural gas globally for our fleet and the alternative fuel market,” Wallace said: “In 2016, we used more than 61 million gallons of natural gas in our ground fleet, which included 4.6 million gallons of renewable natural gas.

“This helped us to avoid the use of conventional gas and diesel, and decreased carbon dioxide emissions by 100,000 metric tons.”

“As we increase the number of stations and vehicles in our fleet, our usage of natural gas and RNG will continue to increase,” says fleet procurement director Mike Casteel.

TruStar, Duke, FortisBC

TruStar Energy is to build six new CNG stations for UPS, he told F&F: in Orlando, Louisville, Ontario, and Salina, Kansas. The new stations in Greensboro, N.C. and Vancouver will be built by Duke Energy and FortisBC, he says.

New Class 8 Kenworth T680 (CNG and LNG) and CNG-fueled Freightliner Cascadia trucks will be supplemented by CNG-fueled Tico terminal trucks.

As for biomethane at UPS, “We’re very open to using more,” says Casteel.

‘Predictable’ Fuel Usage Favors RNG

“Our CNG and LNG infrastructure is well suited to working with RNG producers,” he adds. “Our fuel usage is very predictable and reliable and we are willing to commit to long term agreements, which is often necessary in order for RNG producers to commit the necessary investment to build the RNG production plants.

Subsidies or Credits Still Necessary

“We are using RNG in areas other than California, but obviously that’s where all RNG producers want to direct their fuel due to the California LCFS program,” he says – the low carbon fuel stand.

“With the current RIN values, the economics are favorable for RNG even outside California,’ Casteel says. “But to expand significantly, more long term certainty of RIN values and the RFS program in general would be necessary because with today’s low gas costs, it is not economically feasible to produce biomethane without subsidies.”

Three Quarters of a Billion Dollars for Alt Fuels

UPS notes that in 2016, it 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.

LNG-fueled UPS tractor-trailer in Ontario, Calif.

UPS also purchased 50 additional LNG vehicles that were deployed in Indianapolis, Chicago, Nashville and Earth City, Mo., where UPS has existing LNG stations.

Since 2009, the company has invested more than $750 million in alternative fuel and advanced technology vehicles and fueling stations globally.


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Source: UPS with Fleets & Fuels follow-up

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