Clean Energy (CLNE)

[krays]

Picked out a few excerpts from the new UPS Sustainability Report.
Interesting project with the RNG fuel cell!

UPS 2016 CORPORATE
SUSTAINABILITY REPORT

Natural Gas
Natural gas remains one of the foundational fuels of our
alternative fleet, thanks to its ability to meet our diverse needs
— especially the demands of the heavy-duty, over-the-road
trucks that connect our regional hubs. These big rigs travel an
average of 400 to 600 miles per day and require strong pulling
power. CNG and LNG have proven to be the best alternatives
to diesel for these trucks, meeting their required range and
performance criteria while burning cleaner than diesel or
gasoline. CNG also performs well in our package cars on
local routes averaging more than 100 miles daily.
Natural gas works, in large part, because of its environmental
benefits and cost efficiency. Higher-priced alternative fuel
vehicles and investment in alternative fueling infrastructure
require an environment that supports fuel savings. The
payback on these investments typically requires deployment
in areas served by high-mileage shipments and availability of
lower-cost alternative fuels. The enormous expansion in U.S.
natural gas production and natural gas reserves engenders
confidence that natural gas prices will remain attractive,
compared with diesel prices, for the foreseeable future.
To support our expanding natural gas fleet, we continue to invest
in refueling infrastructure. We build our own infrastructure to
ensure our fleet has access to fuel, and we have full transparency
of all costs involved. In 2016, we opened 11 more CNG fueling
stations in cities throughout the United States. We now have
44 CNG and LNG stations in 21 states. We will further expand our
refueling infrastructure with an additional eight CNG stations
in 2017. UPS has invested more than US$750 million in alternative
fuel and advanced technology vehicles and fueling stations
globally since 2009. This infrastructure positions UPS to
implement the use of RNG. As a result, UPS is now the largest
user of RNG in the shipping business. (page 86)


We’re also testing new applications for renewable energy
sources….. and
we’re exploring ways to use renewable natural gas in fuel
cell electric vehicles in the future. (page 3)

We’re especially excited about the potential
of renewable fuel-cell electric vehicle technology, which has zero tailpipe emissions. (page 85)

We are continuing this record of innovation in 2017 with the
planned deployment of a fuel cell electric vehicle in a pilot
project in California. A combined project with the Department
of Energy, California Air Resources Board, California Energy
Commission, and South Coast Air Quality Management
District, the medium-duty Class 6 (typical UPS package car)
fuel cell delivery vehicle will have zero tailpipe emissions,
meeting proposed regulatory requirements for 2020 in many
delivery areas in California, and will be capable of refueling
at existing CNG stations in the state.
Long term, we believe the focus on electrification of
transportation will increase. Continued advances in
vehicle range and cost will drive adoption of electric
vehicles, reducing the need for subsidies. Advances in
battery technology and solar energy will help address
infrastructure challenges. UPS will lead the charge on
medium-duty vehicles in electrification over the next five
years. Next-generation Class 8 (tractor-trailer) vehicles
present a more difficult challenge and are probably on
a 10- to 15-year time horizon. (page 84)

https://sustainability.ups.com/media/ups-pdf-interactive-2016/UPS_2016_CSR.pdf