Global logistics firm United Parcel Service (UPS) has announced plans to add 50 LNG-fuelled vehicles to its fleet, an additional six compressed natural gas (CNG) fuelling stations and 390 new CNG vehicles.
The investment will total US$90 million and is expected to cement the firm’s position as one of largest logistics fleet operators in the alternative fuel market. The backing of LNG-fuelled vehicles by the world's largest package delivery company is likely to boost confidence in the sector.
“We know the importance of investing in natural gas globally for our fleet and the alternative fuel market. In 2016, we used more than 61 million gallons of natural gas in our ground fleet, which included 4.6 million gallons of renewable natural gas,” Mark Wallace, UPS senior vice president global engineering and sustainability, said.
Last year, UPS purchased 50 additional LNG vehicles that were deployed next existing UPS LNG stations in Indiana, Illinois, Missouri and Tennessee.
Rolling Laboratory to study LNG operations
Alongside its investments in LNG and CNG infrastructure UPS is also researching improvements to the technology via its Rolling Laboratory project which is designed to determine the right alternative fuel solutions for specific environments.
UPS deploys more than 8,100 vehicles in the Rolling Lab and currently runs CNG vehicles in 38 states in the U.S. in addition to vehicles in Germany, the Netherlands and Thailand.
The investment will include six new CNG stations to be built in California, Florida, Kansas, Kentucky, North Carolina and British Colombia. Renewable natural gas (RNG) will be used at the station in Ontario to fuel UPS vehicles in the area with renewable compressed natural gas (RCNG).
RNG, also known as biomethane, will be derived from abundant renewable sources such as decomposing organic waste in landfills, wastewater treatment and agriculture.
