UPS will spend $100 million to purchase 380 big-rig tractors fueled by natural gas and to construct 12 compressed natural gas fueling stations.
It is part of a strategy by the shipping giant to grow its alternative fuel and advanced technology fleet and reduce its environmental impact, UPS said Tuesday.
“CNG is part of a broad investment in a variety of alternative fuel vehicles,” said Mark Wallace, the company’s senior vice president global engineering and sustainability.
Alternative fuel vehicles now make up 6 percent of the UPS 100,000-vehicle global fleet. They have driven a 10 percent annual reduction in use of conventional fuel, Wallace said.
UPS is testing a variety of alternative fuel technologies, including using propane, electricity and natural gas to power its trucks.
Kenworth will build the CNG trucks in this latest investment. The stations will be built by TruStar Energy.
Natural gas helps lower greenhouse gas emissions by 6 percent to 11 percent compared to conventional fuels such as gasoline and diesel, according to the U.S. Department of Energy.
UPS said its alternative fuel technology program is part of its commitment to the Obama Administration’s American Business Act on Climate Pledge. Companies making the pledge promise to reduce greenhouse gas emissions 20 percent by 2020.