



In fact, the renewable diesel outperforms the conventional fuel it's meant to replace, according to Mike Whitlatch, UPS' vice president for global energy and procurement. "It's actually as good or even better from a performance perspective as traditional diesel," including quick engine ignition in cold weather.


Because renewable and conventional diesel are nearly identical, he said, they can be substituted for each other or easily blended without concern for the proportions of the two fuels. As a result, enlarging the market for the non-fossil fuel is "purely a function of how many bio-refineries are built and how much renewable diesel they can produce."

UPS said it will obtain the new fuel from Neste of Espoo, Finland, the world's top producer of renewable diesel; Renewable Energy Group (REG) (NASDAQ:REGI) of Ames, Iowa; and Solazyme (NASDAQ:TVIA) of San Francisco. REG and Neste use oils and fats to produce the new diesel, and Solazyme makes it from an oil it derives from microalgae.


Mark Wallace, UPS' senior vice president, global engineering and sustainability, said the company has spent years experimenting with ways to reduce its carbon footprint, and now believes it is ready to move beyond testing. "Advanced alternative fuels like renewable diesel are an important part of our strategy to reduce the carbon emissions impact of our fleet," he said.

"We have used more than 3 million gallons of renewable diesel to date with positive results," Wallace said. "Renewable diesel has a huge impact significantly reducing life-cycle greenhouse gas emissions by up to 90 percent less versus conventional petroleum diesel."


