The logistics giants, UPS, has announced it is set to acquire over 6,000 natural gas-powered trucks from 2020 until 2022.
The plans represent a three-year commitment to invest $450mn in the expansion of UPS’ alternative fuel and advanced technology vehicle fleet. Set to be equipped with compressed natural gas (CNG) fuel systems provided under an exclusive agreement with Agility Fuel Solutions, a business of Hexagon Composites. It is anticipated that the investment will reduce UPS’s carbon footprint and have a positive influence on national CNG market growth.
“UPS continues to expand and improve our smart logistics network by implementing new technologies and creating a highly flexible, data-driven and sustainable network,” commented Juan Perez, Chief Information and Engineering Officer of UPS. “That is why we intend for 25% of our vehicles purchased in 2020 to run on alternative fuels.”
The vehicles which are equipped with CNG fuel systems can interchangeably use RNG and conventional gas. Having been produced from landfills, dairy farms and other bio sources, RNG consists of up to a 90% reduction in lifecycle greenhouse gas emissions in comparison to conventional diesel. Over the next seven years, it is expected that UPS will purchase 230mn gallon equivalents of RNG which will make the company the largest consumer of RNG in the transportation industry.
“We are proud to continue our collaboration with UPS, a front-runner in clean transportation,” added 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.”
Since 2016, Agility Fuel Solutions has provided natural gas fuel storage and delivery systems to over 1,700 UPS trucks. The firm is set to provide complete end-to-end natural gas systems for heavy-duty gas trucks, terminal tractors and medium-duty walk-in vans which are UPS’s familiar brown delivery trucks. Over the past 10 years, UPS has invested more than $1bn in alternative fuel and advanced technology vehicles and fueling stations to help meet its target of decreasing absolute greenhouse gas emissions by 12% across its global ground operations by 2025.
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