UPS to Invest $100 Million More in CNG Vehicles, Fueling Stations

Rich Clement/Bloomberg News

UPS Inc. will invest $100 million to expand its network of natural gas-powered freight transportation by building 12 more U.S. fueling stations and buying 380 more heavy-duty tractors that use the fuel, the company announced March 15.

Atlanta-based UPS said it will buy the highway tractors from Kenworth Truck Co., a division of Paccar Inc. The vehicles will use compressed natural gas in Cummins Westport ISX 12G engines.

Four of the 12 CNG stations will be in Texas — Amarillo, El Paso, Fort Worth and San Antonio — and then one each in Arizona, Colorado, Georgia, Kansas, Nevada, Pennsylvania, South Carolina and Tennessee.

“CNG is part of a broad investment in a variety of alternative fuel vehicles. Taken together, all of our alternative fuel vehicles represent 6% of the more than 100,000 UPS global fleet and have driven a 10% annual reduction in use of conventional fuel,” Mark Wallace, senior vice president for global engineering and sustainability, said in the statement.

TruStar Energy will build the stations, and Agility and Quantum Fuel Systems will provide the CNG systems on the trucks.

UPS, which ranks No. 1 on the Transport Topics Top 100 list of for-hire carriers, already has 18 CNG stations operating in the United States as well as Germany, the Netherlands and Thailand.

The company said its U.S. fleet includes more than 6,840 all-electric, hybrid-electric, hydraulic-hybrid, CNG, liquefied natural gas and propane-powered vehicles.