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UPS Inc. will build an additional six compressed natural gas (CNG) fueling stations and add 390 new CNG tractors and terminal trucks and 50 liquefied natural gas (LNG) vehicles to its alternative fuel fleet.
UPS Inc. is investing another $90 million in vehicles that run on natural gas and the infrastructure to support them, the company said in a statement.
The Atlanta-based parcel giant will build an additional six compressed natural gas (CNG) fueling stations, and add 390 new CNG tractors and terminal trucks, along with 50 liquefied natural gas (LNG) vehicles to its alternative fuel fleet.
The six new CNG stations will be built in Ontario, Calif.; Orlando, Fla.; Salina, Kan.; Louisville, Ky.; Greensboro, N.C; and Vancouver, B.C.
UPS said Renewable natural gas (RNG) will be used at the station in Ontario to fuel its vehicles in the area with renewable compressed natural gas (RCNG).
RNG, also known as biomethane, can be derived from renewable sources such as decomposing organic waste in landfills, wastewater treatment and agriculture, and distributed through the natural gas pipeline system for use as LNG or CNG, the company said.
A 2015 report from the U.S. Department of Energy estimated the use of natural gas as vehicle fuel could reduce greenhouse gas emissions by 6 percent to 11 percent.
Last year, UPS invested $100 million in CNG fueling stations and vehicles. The company currently operates 31 CNG fueling stations in Alabama, Arizona, California, Colorado, Georgia, Kansas, Kentucky, Louisiana, Nevada, Oklahoma, Pennsylvania, Texas, Virginia, Tennessee and West Virginia, and runs CNG vehicles in 38 states in the U.S. in addition to vehicles in Germany, the Netherlands and Thailand.
UPS also purchased 50 additional LNG vehicles that were deployed in Indianapolis; Chicago; Earth City, Mo.; and Nashville, Tenn., where UPS has existing LNG stations.
“With more than 4,400 natural gas vehicles and a network of fueling stations, UPS has had great results using natural gas as an alternative fuel in our fleet,” Mark Wallace, UPS senior vice president, global engineering and sustainability, said of the investment.
“We know the importance of investing in natural gas globally for our fleet and the alternative fuel market,” he added. “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. This helped us to avoid the use of conventional gas and diesel, and decreased CO2 emissions by 100,000 metric tons.”