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Well lookie here, UPS makes more of a commitment to RNG.


By Eric Mandel – Digital Producer , Atlanta Business Chronicle
Feb 4, 2020, 2:47pm EST
UPS is again upping its ante on renewable natural gas.

United Parcel Service Inc. (NYSE: UPS) said Tuesday it entered into a pair of multi-year RNG deals — with Kinetrex Energy and TruStar Energy — that supply UPS with up to 80 million gallon equivalents of RNG, according to a news release.

The Kinetrex contract fuels UPS's LNG-powered trucks in Chicago, Columbus, Indianapolis, St. Louis and Toledo. The TruStar Energy contract will go to UPS’s CNG-powered trucks in Visalia and Moreno Valley, Calif. Financial details of the deal were not released.

The deals build on a previous contract in which UPS agreed to purchase 170 million gallons of RNG from Clean Energy Fuels Corp. (NASDAQ: CLNE), its biggest commitment to date.

UPS has agreed to buy 250 million gallon equivalents of RNG over the next seven years. The company says it's the largest consumer of RNG in the transportation industry.

“The use of RNG is a very important part of UPS’s strategy to increase alternative fuel consumption to be 40 percent of total ground fuel purchases by 2025,” said Mike Whitlatch, UPS' vice president of global energy and procurement, in the news release. “We are using both liquid natural gas and compressed natural gas as bridging fuels to increase our use of RNG. This will have a measurable impact as RNG yields up to a 90 percent reduction in lifecycle greenhouse gas emissions when compared to conventional diesel. Using RNG is what will ultimately help UPS meet its 2025 sustainability goals.”

UPS has invested heavily in its “Rolling Laboratory” approach to alternative fuel and technology vehicles. The Atlanta-based logistics giant recently announced plans to purchase more than 6,000 natural gas-powered trucks through 2022 — a $450 million investment.