UPS places large order for alternative fuel vehicles

United Parcel Service Inc. has ordered 200 hybrid electric vehicles and 300 compressed natural gas vehicles for its U.S. delivery fleet.

The Atlanta-based package delivery company (NYSE: UPS) said Tuesday that the purchase of the 500 vehicles means the UPS alternative fuel fleet will grow by 30 percent to 2,218 low-carbon vehicles from the current from 1,718.

"Alternative fuel research and development is just one of the ways that UPS is mitigating climate change risks," Bob Stoffel, UPS corporate sustainability officer, said in a news release. "We also are focused on aggressive conservation programs and improving network efficiency to cut fuel use."

UPS' "green fleet" includes electric, hybrid electric, compressed natural gas, liquefied natural gas and propane-powered vehicles. A company spokeswoman said the overall alternative energy fleet represents an investment of more than $15 million, although the purchase price for the latest truck order was not disclosed.

The 200 hybrid electric vehicles will be deployed in 2009, while the 300 natural gas vehicles will be deployed later this year. Freightliner Custom Chassis Corp. will supply the chassis for the vehicles and Eaton Corp. will supply the power systems.