UPS will spend $70 million to buy 1,000 propane-fueled delivery trucks and build 50 fueling stations, the company said Wednesday.
The trucks will be used first in rural Oklahoma and Louisiana in early 2015, where they will replace vehicles that run on gasoline and diesel, UPS said, but added that it plans on expanding the program to other states. Infrastructure operations are expected to begin toward the middle of the year.
UPS said the 1,000 vehicles will save 3.5 million gallons of gas and diesel annually.
The investment comes on the heels of a 20-truck test completed in Gainesville, Ga., this winter with the help of the Propane Education & Research Council.
"The opportunity to road test new propane vehicles and fueling equipment with one of the most sophisticated fleets in the country is a major milestone for the propane industry," said the council’s president, Roy Willis. "This announcement is the culmination of many entities bringing together the best in propane technology to achieve the greatest economic and environmental results."