‘Initial’ $18 Million for Four Fueling Stations by End of 2014
UPS says it expects to have the most extensive private liquefied natural gas fleet in the U.S. by end of 2014. The package delivery/logistics powerhouse has confirmed plans to purchase approximately 700 additional LNG vehicles and to invest $18 million to build fueling stations in Knoxville, Nashville and Memphis, Tenn., and in Dallas, Texas.
UPS will have LNG fueling operations across ten states.
The new information adds to an announcement this week by Pivotal LNG that it would help supply UPS in Tennessee, and to Texas Natural Gas Vehicle Grant Program support for the purchase of approximately 130 Kenworth trucks there (F&F, April 23).
LNG Is a ‘Bridge’
“LNG will be a viable alternative transportation fuel for UPS in the next decade as a bridge between traditional fossil fuels and emerging renewable alternative fuels and technologies that are not quite ready for broad-based long-term commercial deployment,” UPS chairman and CEO Scott Davis said in a release.
UPS already operates 112 LNG tractor trailers from fueling stations in Las Vegas, Phoenix, Salt Lake City and Beaver, Utah. UPS has its own LNG fueling station, dating from 1997, in Ontario, Calif.
“When other shipping and logistics companies are talking about possibilities, we are putting alternative fueled vehicles on the highway,” Davis said. “LNG is a good alternative to petroleum-based fuel for long-haul delivery fleets as it is abundant and produces reduced emissions at less cost.
‘Knocking Down the Hurdles’
“At UPS, we are helping to knock down some of the biggest hurdles to broad market acceptance of LNG in commercial transportation by continuing to establish vehicle demand, fuel and maintenance infrastructures,” Davis said.
UPS says it “has been operating natural gas vehicles for more than a decade. With natural gas prices 30% to 40% lower than imported diesel and U.S. production gearing up, the logistics company is investing more aggressively in the natural gas infrastructure necessary to make it part of the UPS delivery network here. Beyond favorable fuel cost and domestic resource access, the industry cites 25% less carbon dioxide emissions.”
Worldwide, UPS has more than 1,000 natural gas vehicles in service. Its alt fuel and advanced technology fleet of more than 2,600 vehicles also includes all-electric vehicles, electric hybrids and hydraulic hybrids, as well as propane-, CNG/compressed natural gas-, and biomethane-fueled vehicles
“Since 2000, the fleet powered by alternative fuels and technologies has driven more than 295 million miles,” UPS says.
“We plan expansion through infrastructure partnerships and a broader fleet in states that are leading the way to make alternative fuel vehicles economically feasible,” Davis said.
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Source: UPS with Fleets & Fuels follow-up