Clean Energy (CLNE)

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UPS Reaches Large Renewable Natural Gas Deal With Clean Energy Fuels >UPS CLNE
8:49 am ET May 22, 2019 (Dow Jones) Print
By Colin Kellaher

United Parcel Service Inc. (UPS) on Wednesday said it will buy 170 million gallon equivalents of renewable natural gas over seven years from Clean Energy Fuels Corp. (CLNE) as it works to increase alternative fuel consumption to 40% of its total ground fuel purchases by 2025.

The Atlanta package-delivery giant said it will buy 22.5 million to 25 million gallon equivalents a year under the deal, which it termed the largest purchase ever in the U.S. of renewable natural gas, or RNG.

UPS said the switch to RNG from diesel fuel will reduce greenhouse-gas emissions from its fleet by more than 1 million metric tons over the life of the agreement, adding that it will now be using nearly as much RNG in one year as it has over the past five years combined.

Shares of Clean Energy, a Newport Beach, Calif., provider of natural-gas fuel co-founded by legendary oilman T. Boone Pickens, rose 11% in premarket trading to $3.09.

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