By Angela Chen
United Parcel Service Inc. agreed to use renewable natural gas
from Clean Energy Fuels Corp. for some of its delivery fleet, as
part of its plan to drive one billion miles using alternative fuel
by the end of 2017.
Clean Energy Fuels produces a product called Redeem, which is
the first renewable natural gas available in commercial
quantities.
The RNG will be used in stations across California beginning
this month to fuel tractors and delivery vehicles. The stations in
Sacramento, Los Angeles and Fresno will provide about 1.5 million
gallon equivalents of RNG fuel to about 400 vehicles in the
state.
The company already uses natural gas on tractors in the U.K.
RNG, or biomethane, can be created from sources such as
decomposing organic waste in landfills.
"Renewable natural gas is critical to our effort to minimize
UPS's environmental impact while meeting the growing demand for our
services," said Mitch Nichols, UPS senior vice president of
transportation and engineering.
The Atlanta-based delivery giant said in April that revenue for
U.S. ground packages grew 5.3% to $6.36 billion in the first
quarter. That helped buoy total U.S. domestic-package operating
profit, which rose 10.5% to $1.02 billion. Overall revenue rose by
1.4%.
Write to Angela Chen at angela.chen@dowjones.com
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