UPS increases use of biomethane

US-headquartered package delivery company UPS announced an agreement with Big Ox Energy (a wholly- owned subsidiary of Environmental Energy Capital) to purchase 10 million gallon equivalents of biomethane, also known as renewable natural gas (RNG) per year.

This is the largest investment in RNG to date for the company, and the agreement runs through 2024.

Use of RNG yields up to a 90% reduction in lifecycle greenhouse gas emissions when compared to conventional diesel.

In addition to the agreement with Big Ox, UPS signed a five-year agreement earlier this year with AMP energy for 1.5 million gallon equivalents of RNG per year from the Fair Oaks dairy farm in Indiana.

The RNG agreements will help UPS reach a key sustainability goal: 40% of all ground transportation fleet fuel from sources other than conventional gasoline and diesel by 2025.

Alternative fuel to gasoline

“Natural gas is a proven alternative fuel to gasoline and diesel and is a key building block for our goal to reduce greenhouse gas emissions in our ground fleet,” said Mike Casteel, UPS director of fleet procurement.

He added: “These agreements add significantly to our investment in the use of RNG and will help put us on track to nearly triple our annual use of RNG. They are also a direct reflection of our ongoing commitment to help shape the renewable natural gas industry.”

UPS fueling stations in Lexington, Ky.; Louisville, Ky.; New Stanton, Pa.; Richmond, Va.; Roanoke, Va.; West Columbia, S.C.; Horsham, Pa. and Doraville, Ga. will use the Bix Ox RNG to fuel UPSdelivery vehicles and tractors.

Biomethane can be derived from many abundant and renewable sources, including decomposing organic waste in landfills, wastewater treatment and agriculture.

 It is then distributed through the natural gas pipeline system, making it available for use as liquefied natural gas (LNG) or compressed natural gas (CNG).

‘Move the industry forward’

“UPS continues to make investments in renewable natural gas that help move the industry forward,” said Rob Larsen, CEO of Big Ox Energy.

He added: “Our agreement with UPS is one of the largest contracts we have signed to date and among the largest ever in the RNG market.”