Announces Three New Renewable Fuels Agreements
UPS® (NYSE:UPS) today announced 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 utilization. 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% 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 our 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. “We have used more than three million gallons of renewable diesel to date with positive results. Renewable diesel has a huge impact significantly reducing lifecycle greenhouse gas emissions by up to 90 percent less versus conventional petroleum diesel. Renewable diesel also performs well in cold weather, does not have any blending limitations and can be easily ‘dropped in’ to our fuel supply chain without modifications to our existing diesel trucks and equipment.”
Renewable diesel is an advanced hydrocarbon-based fuel that is fully interchangeable with petroleum diesel and offers superior performance and benefits, much like how synthetic lubricants are used in cars instead of petroleum-based lubricants. Bio-based feedstocks from fats, plant oils and waste residues are converted to renewable diesel using advanced refining technologies. These new bio-refineries also have the capability to produce other renewable fuels such as renewable jet fuel, renewable gasoline and renewable propane.
“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,” said Wallace.
UPS has been using renewable fuels for more than a year in trucks operating in Texas and Louisiana. The new agreements pave the way for expanded use across the U.S. and potentially in parts of Europe.
Neste, headquartered in Espoo, Finland, is the world’s largest producer of renewable diesel. Neste produces NEXBTL renewable diesel from a variety of feedstocks including more than half from waste and residues.
REG, headquartered in Ames, Iowa, produces renewable hydrocarbon diesel fuel from waste vegetable oils and animal fats at its Geismar, Louisiana, bio-refinery as well as biodiesel at nine bio refining locations in the U.S.
Solazyme, headquartered in San Francisco, produces a blended fuel made from microalgae and other renewable feedstocks.
“Developing alternative, economically viable energy sources is critical to UPS’s commitment to reduce our environmental impact, improve communities and foster economic development opportunities around the world,” Wallace said.
Additionally, earlier today, UPS released its 13th annual 2014 Corporate Sustainability Report, highlighting its growing investment in alternative fuel and advanced technology vehicles. For more information on UPS's sustainability initiatives, please visit www.ups.com/sustainability.
UPS (NYSE: UPS) is a global leader in logistics, offering a broad range of solutions including transporting packages and freight; facilitating international trade, and deploying advanced technology to more efficiently manage the world of business. UPS is committed to operating more sustainably – for customers, the environment and the communities we serve around the world. Learn more about our efforts at ups.com/sustainability. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide. The company can be found on the web at ups.com® and its corporate blog can be found at longitudes.ups.com. To get UPS news direct, visit pressroom.ups.com/RSS.
Neste is a forerunner in oil refining and renewable solutions. Neste offers customers cleaner traffic solutions and industrial products based on cutting-edge research. Neste is the leading producer of renewable diesel in the world, with an annual production volume of more than 2 million tons and the world’s largest producer of renewable fuels from waste and residues. Neste’s sustainable practices have received recognition in the Dow Jones Sustainability World Index and the Global 100 list of the world's most sustainable companies. Neste shares are listed on NASDAQ Helsinki. Learn more at www.neste.us
About Renewable Energy Group, Inc.
Renewable Energy Group, Inc. (NASDAQ: REGI) is a leading North American advanced biofuels producer and developer of renewable chemicals. REG utilizes a nationwide production, distribution and logistics system as part of an integrated value chain model to focus on converting natural fats, oils and greases into advanced biofuels and converting diverse feedstocks into renewable chemicals. With 10 active biorefineries across the country, research and development capabilities and a diverse and growing intellectual property portfolio, REG is committed to being a long-term leader in bio-based fuels and chemicals. For more information on REG visit our website at www.regi.com.
Solazyme, Inc. (NASDAQ: SZYM) is a renewable oil and bio-product company that transforms a range of low-cost, plant-based sugars into high-value oils. Headquartered in South San Francisco, Solazyme’s renewable products can replace or enhance oils derived from the world’s three existing sources – petroleum, plants and animal fats. Solazyme is focused on commercializing its products into four target markets: (1) fuels and chemicals, (2) nutrition, (3) encapsulated lubricants and (4) consumer products. Learn more at www.solazyme.com.
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