UPS Reaches New Biofuel Deals To Reduce Carbon Emissions

By MarketWatch Pulse

UPS said Wednesday it has reached agreements for up to 46 million gallons of renewable fuels over the next three years, a 15-fold increase over its previous contracts. The parcel delivery service said Neste, Renewable Energy Group and Solazyme will supply it with renewable diesel, as it shifts to make more than 12% of its fuel come from alternatives by the end of 2017. The bigger goal is to switch to alternative fuels and fuel-efficient and advanced vehicles for one billion miles by the end of 2017. "Renewable diesel has a huge impact significantly reducing lifecycle greenhouse gas emissions by up to 90 percent less versus conventional petroleum diesel," senior vice president of global engineerng and sustainability Mark Wallace said in a statement. Rival FedEx Corp. said earlier this month that it has reached a deal with Colorado-based Red Rock BioFuels to receive about 3 million gallons of low-carbon renewable jet fuel per year beginning in 2017. That deal is set to run through 2024.

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