UPS signs two large RNG contracts

As part of its sustainability goals, UPS has entered into two renewable natural gas (RNG) contracts with Kinetrex Energy and TruStar Energy. In the multi-year agreements the two suppliers will provide up to 80 million gallon equivalents (GEs) of RNG.

“The use of RNG is a very important part of UPS’s strategy to increase alternative fuel consumption to be 40% of total ground fuel purchases by 2025,” said Mike Whitlatch, vice president of global energy and procurement, UPS. “We are using both liquid natural gas (LNG) and compressed natural gas (CNG) as bridging fuels to increase our use of RNG. This will have a measurable impact as RNG yields up to a 90% reduction in lifecycle greenhouse gas emissions when compared to conventional diesel. Using RNG is what will ultimately help UPS meet its 2025 sustainability goals.”

UPS is to receive up to 52.5 million GEs of RNG from Kinetrex for its tractor-trailer units travelling across the US Midwest. The RNG will be supplied at depots in Chicago, Columbus, Indianapolis, St. Louis and Toledo for UPS LNG powered trucks. In addition TruStar Energy is to provide up to 27.5 million GEs of RNG for use in California, specifically at the Visalia and Moreno Valley depots.

Over the next five years, UPS has committed to using 250 million GEs of RNG across the US, making it the biggest single RNG logistics user.