Monday, March 07, 2011 





LAS VEGAS BUSINESS PRESS

United Parcel Service has contracted with Clean Air Fuels Corp. to build a liquefied natural gas fueling station in Las Vegas to serve its new fleet of 48 road tractors that will use the alternative fuel.

The agreement has a seven-year initial term with three, one-year renewal options. Clean Energy will design, build, own and operate the station, which is set to open in this year's first half.



The ordered vehicles, Kenworth tractors with GX engines, are set to pull trailers on UPS' Interstate 15 route from Southern California to Northern Utah. Most of the new fleet will be housed at the Las Vegas station and will replace diesel-powered vehicles.

In the Southwest, UPS already has 11 liquefied natural gas-powered tractors that have operated from Ontario, Calif., since 2000.

The new fuel station in Las Vegas will be publicly accessible. The location was chosen because it essentially is a midpoint between existing stations in Ontario, Calif., and Salt Lake City.

The new tractors will be delivered in this year's first half. With them, UPS will have about 1,100 natural gas trucks. It also has about 800 electric, hybrid-electric and propane-powered trucks.

Clean Air Fuels Corp. expects to deliver 1.2 million gallons of liquefied natural gas per year to UPS.

Funding for the trucks and fueling stations comes from the U.S. Department of Energy and the South Coast Air Quality Management District. The Department of Energy estimated that the liquefied natural gas tractors will help save about 1.25 million gallons of petroleum annually.

Buck