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UPS Becomes Nation's Largest User of Renewable Natural Gas in Shipping Industry

Globe Newswire

ATLANTA, May 5, 2015 (GLOBE NEWSWIRE) -- UPS® (NYSE:UPS) today announced it has entered intoan agreement to purchase renewable natural gas (RNG) for itsdelivery vehicle fleet from Clean Energy Fuels Corp. (NASDAQ:CLNE). The deal signifies UPS's plan to significantly expand itsuse of renewable natural gas for its alternative fuel and advancedtechnology fleet. The company has a goal of driving one billionmiles using its alternative fuel and advanced technology fleet bythe end of 2017.  

Clean Energy Fuels, co-founded by T. Boone Pickens, is theexclusive producer of Redeem, the first RNG madeavailable in commercial quantities. 

UPS fueling stations in Sacramento, Fresno and Los Angeles willutilize Redeem RNG for refueling tractors and deliveryvehicles in UPS's fleet beginning this month. UPS and Clean EnergyFuels Corp. estimate that the three stations will provideapproximately 1.5 million gallon equivalents annually of RNG fuelto nearly 400 UPS® CNG vehicles in California.

RNG, also known as biomethane, can be derived from many abundantand renewable sources, including decomposing organic waste inlandfills, wastewater treatment and agriculture.

"Renewable natural gas is critical to our effort to minimizeUPS's environmental impact while meeting the growing demand for ourservices," said Mitch Nichols, UPS senior vice president oftransportation and engineering. "Our rolling laboratory approachprovides a unique opportunity for UPS to test different fuels andtechnologies. Today's RNG agreement will help mature the market forthis promising alternative fuel. This commitment also positions UPSto use RNG in its extensive natural gas fleet which includes morethan 2,500 medium and heavy duty vehicles."

"This step by UPS sends a clear message that RNG is a viable,cost-effective alternative to traditional diesel," said HarrisonClay, Clean Energy Renewables president. "Redeemreduces environmental impact because it captures naturallyoccurring methane before it is released into the atmosphere as agreenhouse gas emission, turning that methane into a safe, useablefuel that displaces the diesel fuel, and its carbon emissions, thatwould otherwise be used. "

UPS currently operates natural gas tractors on RNG in the UK,through a partnership with Mercedes Benz.

In addition to its growing commitment to RNG, UPS uses severalother alternative fuels and advanced technologies. UPS isdeveloping the cleanest, most effective pathways to support thecompany's effort to reduce emissions and dependence on fossil fuelswhile improving efficiency. These pathways involve deployingadvanced technologies and alternative fuels in real-worldapplications, and advocating for rational incentives and taxpolicies that lead to market parity among alternative fuels. Thecompany's actions are aimed at developing economically viable lowercarbon alternatives to traditional fuels for use in its extensivetransportation fleet.

The first package delivery company to introduce alternative fueltractors into its fleet, UPS operates one of the largest privatealternative fuel and advanced technology fleets in the U.S. Itsfleet includes nearly 5,500 all-electric, hybrid electric,hydraulic hybrid, CNG, LNG, propane, biomethane and light-weightfuel-saving composite body vehicles.

For more information about UPS's RNG initiative, please go tohttp://longitudes.ups.com/.

About UPS

UPS (NYSE: UPS) is a global leader in logistics, offering abroad range of solutions including the transportation of packagesand freight; the facilitation of international trade, and thedeployment of advanced technology to more efficiently manage theworld of business. UPS is committed to operating more sustainably -for customers, the environment and the communities we serve aroundthe world.  Learn more about our efforts at ups.com/sustainability.Headquartered in Atlanta, UPS serves more than 220 countries andterritories worldwide. The company can be found on the Web atups.com®and its corporate blog can be found at Longitudes.ups.com. To get UPSnews direct, visit pressroom.ups.com/RSS.

About Clean Energy

Clean Energy Fuels Corp. (Nasdaq: CLNE) is the leading providerof natural gas fuel for transportation in North America. We buildand operate compressed natural gas (CNG) and liquefied natural gas(LNG) fueling stations; manufacture CNG and LNG equipment andtechnologies for ourselves and other companies; develop renewablenatural gas (RNG) production facilities; and deliver more CNG, LNGand RedeemRNG fuel than any other company in the U.S.For more information, visit www.cleanenergyfuels.com.

CONTACT: Kristen Petrella 404-828-4182 kpetrella@ups.com

Source: UPS