UPS increases use of natural gas as fuel

UPS, a global logistics company, operating over 5,200 LNG and CNG vehicles has agreed to increase use of natural gas as fuel for its fleet through a supply deal with Big Ox Energy. 

Under the agreement, Big Ox Energy will deliver 10 million gallon equivalent of renewable natural gas per year to UPS, the company’s largest investment in RNG to date, the company’s statement reads.

RNG, is biomethane that can be derived from sources including decomposing organic waste in landfills, wastewater treatment and agriculture and can be used in the form of liquefied natural gas (LNG) or compressed natural gas (CNG).

In addition to the agreement with Big Ox, UPS signed a five-year agreement earlier this year with AMP energy for 1.5 million gallon equivalents of RNG per year from the Fair Oaks dairy farm in Indiana.

UPS fueling stations in Lexington and Louisville, Kentucky, New Stanton and Horsham in Pennsylvania, Richmond and Roanoke, Virginia, West Columbia, South Carolina and Doraville, Georgia will use the Bix Ox RNG to fuel UPS delivery vehicles and tractors.

UPS used 61 million gallons of natural gas in its ground fleet in 2016, which included 4.6 million gallons of RNG and is on track to use 14 million gallons of RNG in 2017.

Earlier this year, UPS announced a more than $90 million investment in natural gas vehicles and infrastructure including 250 LNG vehicles and 390 CNG tractors and terminal trucks.