Ten Million Gallons Annually of RNG from Big Ox Energy
As Well as 1.5 Gallons Annually for Five Years from Amp
UPS is disclosing this morning a landmark agreement for 10 million equivalent gallons per year of RNG/renewable natural gas from Big Ox Energy. “This is the largest investment in RNG to date for the company,” says a release.
The agreement with Big Ox runs through 2024.
UPS notes that the use of RNG yields up to a 90% reduction in lifecycle greenhouse gas emissions when compared to conventional diesel.
UPS said too this morning that in addition to the new agreement with Big Ox, it signed a five-year agreement earlier this year with Amp Americas for 1.5 million gallon equivalents of RNG per year from the Fair Oaks dairy farm in Indiana.
A Great, Great Greenhouse Fuel
(Amp said in September that its Fair oaks RNG has been certified by California’s Air Resources Board – chalking up a CI/carbon Intensity score of negative 254.94 gCO2e/MJ, “which is the lowest ever issued by CARB;” F&F, September 28, 2017.)
The RNG agreements, says UPS, will help its reach a key sustainability goal: 40% of all ground transportation fleet fuel from sources other than conventional gasoline and diesel by 2025.
“Natural gas is a proven alternative fuel to gasoline and diesel and is a key building block for our goal to reduce greenhouse gas emissions in our ground fleet,” Mike Casteel, UPS director of fleet procurement, says in today’s announcement.
‘A Direct Reflection of Our Ongoing Commitment’
“These agreements add significantly to our investment in the use of RNG and will help put us on track to nearly triple our annual use of RNG,” he said.
“They are also a direct reflection of our ongoing commitment to help shape the renewable natural gas industry,” he said.
“Adding new suppliers benefits us and helps bring RNG into the mainstream,” Casteel told F&F. “We’re doing more for the environment and hope UPS’s efforts will enable other operators to do more, too.”
Stations in Five States
The Big Ox RNG will be dispensed for delivery vehicles and tractors at UPS fueling stations in
- Lexington and Louisville, Ky.;
- New Stanton and Horsham, Pa.;
- Richmond and Roanoke, Va.;
- West Columbia, S.C.; and
- Doraville, Ga.
RNG, also known as biomethane, “can be derived from many abundant and renewable sources, including decomposing organic waste in landfills, wastewater treatment and agriculture,” UPS says. It is then distributed through the natural gas pipeline system, making it available for use as LNG/liquefied natural gas or CNG/compressed natural gas.
“UPS continues to make investments in renewable natural gas that help move the industry forward,” Big Ox Energy CEO Rob Larsen says in the UPS release.
‘One of the Largest Contracts We Have Signed to Date,’ Says Big Ox
“Our agreement with UPS is one of the largest contracts we have signed to date,” he said – “and among the largest ever in the RNG market.”
UPS says it used 61 million gallons of natural gas in its ground fleet in 2016, which included 4.6 million gallons of RNG. It is on track to use 14 million gallons of RNG in 2017.
UPS operates more than 5,200 CNG and LNG vehicles in its fleet of alternative fuel and advanced technology vehicles.
Earlier this year, UPS announced a more than $90 million investment in natural gas vehicles and infrastructure (F&F, March 15, 2017). The investment included an additional six CNG fueling stations, 390 new CNG tractors and terminal trucks, and 250 LNG vehicles.
Three Quarters of a Billion Dollars for Clean Fuels
Since 2009, UPS said today, it has invested more than $750 million in alternative fuel and advanced technology vehicles and fueling stations globally: “UPS deploys the more than 8,500 vehicles in its Rolling Lab to utilize technologies that work best depending on the needs of the delivery route.
“From old-fashioned pedal power and electric-assisted bicycles in dense urban areas like London and Hamburg to electric and hybrid electric vehicles in the U.S., and natural gas, renewable natural gas and propane globally, UPS puts sustainability innovation into action, all over the world.”
Big Ox Energy is a wholly owned subsidiary of Environmental Energy Capital, LLC. The company converts organic waste from municipal waste water facilities, agriculture, and food processing into pipeline-grade RNG.
Want to know more about RNG/biomethane?
Check out the fourth annual Rethink Methane symposium,
organized by Fleets & Fuels publisher GNA/Gladstein, Neandross & Associates,
at the Sacramento Convention Center in California February 6-7.
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Source: UPS with Fleets & Fuels follow-up