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UPS Invests $100 Million in CNG Fleet and Stations

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March 28, 2016

UPS plans to spend more than $100 million to expand its CNG fleet and infrastructure. The company will add 12 CNG fueling stations to its network, extending it from the Southwest to the Northeast, and purchase 380 new CNG tractors for its alternative fuel and advanced technology fleet.

“For several years UPS has been one of the national leaders in using alternative fuel trucks in its fleet, but this latest investment sets a new bar for companies across the country,” said Tim Carmichael, outgoing Coalition president. “It also underscores some key points we have been making to California policy makers: NGVs are delivering needed emissions reductions now. They’re a practical and appealing choice for heavy-duty applications, and major fleets are making a long-term commitment to them.”

According to Mark Wallace, UPS’s senior vice president of global engineering and sustainability, the company’s alternative fuel vehicles, including CNG tractors, have driven a 10 percent annual reduction in use of conventional fuels. This latest investment in CNG will help UPS meet its goal of logging 1 billion miles with its alternative fuel and advanced technology fleet, one of the largest private fleets in the U.S., by the end of 2017.

“At UPS, we own our fleet and our infrastructure. That allows us to invest for the long term, rather than planning around near-term fluctuations in fuel pricing,” said Wallace in a UPS press release. “CNG is part of a broad investment in a variety of alternative fuel vehicles. Taken together, all of our alternative fuel vehicles represent 6 percent of the more than 100,000 [in the] UPS global fleet.”

UPS already operates 18 CNG fueling stations, including three in California. TruStar Energy will build the 12 new stations in Phoenix; Trinidad, Colorado; Amarillo, El Paso, San Antonio, and Fort Worth, Texas; Reno, Nevada; Kansas City, Kansas; Chattanooga, Tennessee; Columbia, South Carolina; Tifton, Georgia; and Willow Grove, Pennsylvania.

Kenworth will supply the new tractors, which will have fuel storage systems from Agility Fuel Systems and Quantum Technologies.

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