UPS Will Add 2 CNG Stations, Test Electric Vehicles in DFW

The package delivery company wants to have a quarter of its fleet running on alternative energy sources by 2020.

UPS - Compressed Natural Gas

United Parcel Service, which has one of its largest hubs in Dallas-Fort Worth, has announced two major deals that will increase the package delivery company’s presence in alternative fuels and electric vehicles.

First, UPS said Tuesday that it will spend $130 million to buy 730 compressed natural gas vehicles as well as build five more domestic CNG fueling stations, including one each in Fort Worth and Arlington.

“We strongly believe further investment in our natural gas fleet is a key element to help us achieve our long-term goals for reducing our CO2 emissions,” Carlton Rose, president of global fleet maintenance and engineering for UPS, told Reuters.

“We strongly believe further investment in our natural gas fleet is a key element to help us achieve our long-term goals for reducing our CO2 emissions.”

Carlton Rose

Last year, UPS announced plans to lease a 1 million-square-foot warehouse in Arlington to use as a distribution hub.

Last week, the company said that its cooperation with Workhorse to develop new electric delivery vehicles is accelerating, with the initial plans for 50 vehicles now including the purchase of an additional 950 electric vehicles.

The first vehicles will be tested in Dallas, Atlanta, and Los Angeles this year, according to a report on electrive.com.

The vehicles are part of the company’s plans to have a quarter of its new fleet running on alternative fuels by 2020, according to Reuters.

UPS SAYS ELECTRIC VEHICLES WILL HELP SAVE MONEY

The electric delivery vehicles feature 60 kW batteries and have a range of roughly 100 miles, electrive.com said.

While fully electric delivery vehicles cost about the same as a conventional truck, UPS is estimating it will save $170,000 per vehicle over 20 years because of reduced operational costs.

Reuters reported that the vehicles will become part of the company’s “rolling laboratory” of about 9,100 low-emission vehicles, a fleet that includes all-electric, hybrid electric, ethanol, and CNG vehicles.

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