UPS has confirmed agreements for up to 46 million gallons of renewable fuels over the next three years, constituting a 15-fold increase over prior contracts and making UPS one of the largest users of renewable diesel in the world.

The agreements with three leading suppliers of renewable fuels, secure access to an advanced renewable diesel fuel in order to meet the company’s objectives for alternative fuel utilisation. Neste, Renewable Energy Group (REG) and Solazyme will supply renewable diesel to UPS to help facilitate the company’s shift to move more than 12 per cent of its purchased ground fuel from conventional diesel and gasoline fuel to alternative fuels by the end of 2017. UPS has previously announced a goal of driving one billion miles with alternative fuel and advanced technology vehicles by the end of 2017.

“Advanced alternative fuels like renewable diesel are an important part of our strategy to reduce the carbon emissions impact of our fleet,” said Mark Wallace, UPS senior vice president, global engineering and sustainability. “Renewable diesel has a huge impact significantly reducing lifecycle greenhouse gas emissions by up to 90 per cent less versus conventional petroleum diesel. UPS believes these agreements are especially important because they will help stimulate demand for investment in refinery technologies and sustainable feedstocks needed to produce renewable fuels at a total cost that is comparable to more carbon-intensive petroleum fuels.”

Issue 124 September 2015