July 30, 2015 UPS today announced agreements to source up to 46 million gallons of renewable fuels over the next three years, making it one of the largest users of renewable diesel in the world.
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 percent of its purchased ground fuel from conventional diesel and gasoline fuel to alternative fuels by the end of 2017.
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.
"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."
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 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.