UPS CFO Kurt Kuehn Discusses Commitment to Implementation of Green Tech
In an interview with The Street, UPS Chief Financial Officer Kurt Kuehn discussed the company’s commitment to implementation of green tech in order to improve service and reduce their carbon footprint.
“Along with all of our senior leaders, I take a keen interest in how megatrends such as emerging economies, sustainability and global B2C commerce are reshaping our world,” Kuehn said. “We need to make sure that we understand these trends and how they affect our customers' businesses so we can adjust our service offerings appropriately.”
In the realm of sustainability, fuel economy is paramount to the future success of UPS. Kuehn detailed the rollout of the On-Road Integrated Optimization Navigation (ORION) analytics software. The software helps drivers find the most efficient routes for delivery. According to Kuehn, with the software’s implementation for 10,000 routes in 2013, the company is estimated to be saving 1.5 million gallons of fuel and reducing its carbon emissions by 14,000 metric tons per year. ORION also helps collect data about the driver and vehicle’s day, allowing for preventative measures to be taken in regards to repairs and routes that include long idling times, which add to the company’s carbon footprint and fuel consumption. UPS hopes to implement the software for 55,000 of its routes by the end of 2014.
Kuehn also discussed how UPS is committed to alternative fuel sources, investing heavily in technologies such as hybrid electric and hydraulic hybrid. “We're even testing vehicles that run on chicken waste,” Kuehn said.
Kuehn knows the investments will pay off for UPS in the long run.
“UPS investments in alternative fuels not only lower our energy costs, but also make our services more appealing to business customers who are feeling public pressure to reduce their carbon footprint,” he said.
Kuehn also claimed that UPS in “on pace” to drive more than 1 billion “green” miles by 2017.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.