UPS announces large purchase of renewable natural gas

UPS Inc. has agreed to purchase 170 million gallon equivalents of renewable natural gas (RNG) through 2026 from Clean Energy Fuels Corp., the largest RNG commitment ever by a company in the United States.

“The world has a trash problem. And the world has an emissions problem. Renewable natural gas, produced naturally from bio sources such as landfills and dairy farms, not only turns trash to gas, but it turns it into clean gas,” said Mike Casteel, UPS director of fleet procurement.

Clean Energy offers “Redeem” RNG. The company has pledged to convert all its natural gas fuel to its renewable by 2025. Redeem provides at least a 70% reduction in carbon emissions when displacing diesel or gasoline.

UPS plans to increase alternative fuel consumption to about 40% of total ground fuel purchases by 2025. It is targeting use of 22.5 million to 25 million gallon equivalents of RNG per year.

“Since RNG is supported by existing national infrastructure used to transport natural gas, it’s a winning solution that will help UPS to reach our ambitious sustainability goals. At the same time, we hope our unprecedented seven-year commitment serves as a catalyst for wider adoption of RNG by other companies,” Casteel said.

UPS has used more than 28 million gallons of RNG in its ground fleet since 2014. It has 18 company-owned and operated natural gas stations across 12 states that will realize a significant reduction in greenhouse gas emissions over the life of the agreement.

“Together, UPS and Clean Energy are moving the industry forward and toward a nation of energy independence by pushing for RNG at scale,” said Tyler Henn, vice president and general manager of Clean Energy Renewables, a division of Clean Energy. “We’re excited to deliver Redeem to a partner with a substantial alternative fleet and an ongoing commitment to RNG. We’re pleased to be able to fulfill the growing demand for RNG as more fleets seek a clean, economical alternative.” 

Since 2009, UPS has invested more than $1 billion in alternative fuel and advanced technology vehicles and fueling stations. UPS drives more than 6,100 CNG and LNG vehicles which can be powered by RNG.