IN company investing millions to provide fuel to UPS
An Indianapolis company has come to terms on a deal with UPS that is expected to save millions and reduce its carbon footprint.
Kinetrex Energy, a subsidiary of Citizens Energy Group, will supply liquefied natural gas (LNG) to fuel UPS tractor trailers in the Midwest.
President and CEO Carey Lykins says the move is a step toward becoming the leading LNG provider in the region.
"It's perfect timing," he says. "The price of natural gas is 60% of what it was six years ago and especially compared to the price of diesel, which is going up."
Kinetrex officials say liquefied natural gas costs 40% less than diesel and reduces greenhouse gas emissions by 20%. Indiana consumes about $4 billion worth of diesel year.
Lykins says the deal will create jobs, but doesn’t know yet how many.
Indianapolis Mayor Greg Ballard says the partnership helps reduce the nation’s dependence on foreign oil and shows the city is ready to help shape the nation’s energy future.
"When we move from oil to natural gas," he says, "we continue to move that demand curve down across the world, which allows the United States to be in a better position, strategically."
Kinetrex is investing $14 million in infrastructure for the effort. In March, the company will start providing liquefied natural gas to five fueling stations in Indiana, Illinois, Ohio, and Missouri.