UPS yesterday announced agreements for up to 46 million gallons of renewable fuels over the next three years, constituting a 15-fold increase over prior contracts.
Neste, Renewable Energy Group (REG) and Solazyme will supply renewable diesel to UPS to help facilitate the company’s shift to move more than 12 percent of its purchased ground fuel from conventional diesel and gasoline fuel to alternative fuels by the end of 2017. UPS has a goal of driving 1 billion miles with alternative fuel and advanced technology vehicles by the end of 2017.
Renewable diesel will reduce UPS’ lifecycle greenhouse gas emissions by up to 90 percent compared to conventional petroleum diesel, says Mark Wallace, UPS senior vice president, global engineering and sustainability. “Renewable diesel also performs well in cold weather, does not have any blending limitations and can be easily ‘dropped in’ to our fuel supply chain without modifications to our existing diesel trucks and equipment,” he says.
Also yesterday, UPS released its 13th annual 2014 Corporate Sustainability Report, highlighting its growing investment in alternative fuel and advanced technology vehicles.
In May UPS entered into an agreement to purchase renewable natural gas for its delivery vehicle fleet from Clean Energy Fuels, making it the largest RNG users in the US shipping industry.