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UPS enters agreement with Clean Energy Fuels for renewable natural gas (biomethane) in the US

UPS has entered into an agreement to purchase renewable natural gas (RNG) for its delivery vehicle fleet from Clean Energy Fuels Corp. RNG (biomethane) can be derived from many abundant and renewable sources, including decomposing organic waste in landfills, wastewater treatment and agriculture.

The deal signifies UPS’ plan to expand significantly its use of renewable natural gas for its alternative fuel and advanced technology fleet. The company has a goal of driving one billion miles using its alternative fuel and advanced technology fleet by the end of 2017. Clean Energy Fuels, co-founded by T. Boone Pickens, is the exclusive producer of Redeem, the first RNG made available in commercial quantities.

UPS fueling stations in Sacramento, Fresno and Los Angeles will utilize Redeem RNG for refueling tractors and delivery vehicles in UPS’ fleet beginning this month. UPS and Clean Energy Fuels Corp. estimate that the three stations will provide approximately 1.5 million gallon equivalents annually of RNG fuel to nearly 400 UPS CNG vehicles in California.

Renewable natural gas is critical to our effort to minimize UPS’ environmental impact while meeting the growing demand for our services. Our rolling laboratory approach provides a unique opportunity for UPS to test different fuels and technologies. Today’s RNG agreement will help mature the market for this promising alternative fuel. This commitment also positions UPS to use RNG in its extensive natural gas fleet which includes more than 2,500 medium and heavy duty vehicles.

—Mitch Nichols, UPS senior vice president of transportation and engineering

UPS currently operates natural gas tractors on RNG in the UK, through a partnership with Mercedes Benz.

In addition to its growing commitment to RNG, UPS uses several other alternative fuels and advanced technologies. The first package delivery company to introduce alternative fuel tractors into its fleet, UPS operates one of the largest private alternative fuel and advanced technology fleets in the US. Its fleet includes nearly 5,500 all-electric, hybrid electric, hydraulic hybrid, CNG, LNG, propane, biomethane and light-weight fuel-saving composite body vehicles.

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