UPS announced plans to purchase more than 6,000 natural gas trucks beginning in 2020 and running through 2022. This three-year commitment represents a $450 million investment in expanding the company’s alternative fuel vehicle fleet as well as supporting infrastructure. It will help reduce UPS’s carbon footprint and is expected to have a positive influence on national CNG market growth.
The CNG fleet expansion will also provide additional capacity for expanding the use of biomethane. As of October 2019, UPS has agreed to purchase 230 million gallon equivalents of biomethane over the next seven years, making the company the largest consumer of biomethane in the transportation industry.
“UPS continues to expand and improve our smart logistics network by implementing new technologies and creating a highly flexible, data-driven, and sustainable network,” said Juan Perez, chief information and engineering officer, UPS. “That is why we intend for 25% of our vehicles purchased in 2020 to run on alternative fuels.”
The vehicles will be equipped with CNG fuel systems provided by Agility Fuel Solutions, a business of Hexagon Composites. Since 2016, Agility has provided natural gas fuel storage and delivery systems to more than 1,700 UPS trucks. As part of the new agreement, which represents a total value of $65 million to $95 million over the three-year period, Agility will deliver complete end-to-end natural gas systems for heavy-duty trucks, terminal tractors and medium-duty walk-in vans. These will include on-board CNG fuel storage and management and Agility’s certified natural gas engine fuel systems.
“We are proud to continue our collaboration with UPS, a front-runner in clean transportation,” said Seung Baik, president of Agility Fuel Solutions. “With our range of proven and reliable clean fuel technologies and aftermarket support capabilities, we will assist UPS in reaching its sustainability targets.”
Over the past decade, UPS has invested more than $1 billion in alternative fuel and advanced technology vehicles and fueling stations to help meet its target of reducing absolute greenhouse gas emissions by 12% across its global ground operations by 2025. UPS has continued its relationship with TruStar Energy to design, manufacture and install five new CNG stations in Lathrop, Visalia and Moreno Valley, Calif., Houston, Texas, and Cleveland, Ohio.
UPS will deploy the new NGVs on routes to utilize the new CNG stations as well as adding to existing natural gas fleets in other UPS locations. By the end of 2019, UPS will be operating 61 natural gas fueling stations strategically located across the U.S., and outside the U.S. in Vancouver, Canada, and Tamworth, United Kingdom.