UPS has announced agreements for up to 46 million gallons of renewable fuels over the next three years, constituting a 15-fold increase over prior contracts and making UPS one of the largest users of renewable diesel in the world.
The agreements with three suppliers of renewable fuels, secure access to an advanced renewable diesel fuel in order to meet the company’s objectives for alternative fuel utilization. Neste, Renewable Energy Group (REG) and Solazyme are the three companies that will supply renewable diesel to UPS, whose goals are to move more than 12% of its purchased ground fuel from conventional diesel and gasoline fuel to alternative fuels by the end of 2017, and to drive one billion miles with alternative fuel and advanced technology vehicles in the same timeframe.
“Advanced alternative fuels like renewable diesel are an important part of our strategy to reduce the carbon emissions impact of our fleet,” said Mark Wallace, UPS’s senior vice president of global engineering and sustainability. “We have used more than three million gallons of renewable diesel to date with positive results. Renewable diesel has a huge impact significantly reducing lifecycle greenhouse gas emissions by up to 90 percent less versus conventional petroleum diesel. 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.”
“UPS believes these agreements are especially important because they will help stimulate demand for investment in refinery technologies and sustainable feedstocks needed to produce renewable fuels at a total cost that is comparable to more carbon-intensive petroleum fuels,” said Wallace.
Renewable diesel is an advanced hydrocarbon-based fuel that is fully interchangeable with petroleum diesel and offers superior performance and benefits. UPS has been using renewable fuels for more than a year in trucks operating in Texas and Louisiana, and the new agreements pave the way for expanded use across the U.S. and potentially in parts of Europe.
“Developing alternative, economically viable energy sources is critical to UPS’s commitment to reduce our environmental impact, improve communities and foster economic development opportunities around the world,” Wallace said.