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June 03, 2003
FedEx and UPS Green Up Their Fleets With Hybrid Electric and Fuel Cell Vehicles
by William Baue
FedEx introduces hybrid electric delivery vehicles, while UPS is investing in fuel cell technology.
SocialFunds.com --
Late last month, the package delivery companies FedEx (ticker: FDX) and UPS (UPS) announced
steps they are taking to reduce their energy consumption and carbon emissions. FedEx collaborated
with Environmental
Defense, a nonprofit organization, to introduce a low-emission hybrid electric powered delivery
vehicle that could become the standard medium duty delivery truck in FedEx's fleet. Meanwhile, UPS
announced a joint project with the U.S. Environmental Protection Agency (EPA) and DaimlerChrysler
(DCX) to develop and later deploy zero-emission, fuel cell-powered vehicles.
 Later this year and into early 2004, FedEx
will introduce 20 OptiFleet E700 hybrid electric vehicles in four yet-to-be-named U.S. cities.
Except for a small OptiFleet logo, the E700 vehicles will look the same as their standard W700
counterparts. However, the vehicles will function quite differently.
While the W700
uses gasoline to power a six-cylinder engine, the E700 combines a four-cylinder diesel engine with
an electric motor, with a computer determining the most efficient combination. FedEx and
Environmental Defense, which began their collaboration in 2000, chose the Eaton Corporation (ETN) from among
more 20 competitors to manufacture the hybrid electric powertrain.
"Working together
with Environmental Defense, FedEx has developed a truck that will deliver cleaner and healthier
air, reduce oil dependency, and reduce climate change impacts," said Fred Krupp, president of
Environmental Defense.
Compared to a 1999 W700, the representative model of the FedEx
fleet, the E700 will decrease particulate emissions by 90 percent, reduce smog-causing emissions by
75 percent and increase fuel efficiency by 50 percent. It does this in part by employing a
particulate trap to capture the increased amount of particulates emitted by diesel engines. It
also uses "regenerative braking," a process that recycles the energy that is usually wasted in
braking by capturing and storing this energy in lithium-iron batteries for future use by the
electric motor.
"While diesel does have higher particulate matter content, it's an
excellent alternative to gasoline-powered engines, and when you incorporate hybrid technologies
such as regenerative braking, you're using more of the energy generated by the engine for
propelling the vehicle itself," said Brian Adams, public information associate with Rocky Mountain Institute (RMI). RMI is a nonprofit
energy resources think tank that consults with businesses on progressive transportation options
such as hybrid electric and fuel cells.
"Most of the energy that goes into a vehicle is
wasted," Mr. Adams told SocialFunds.com. "Only about one percent [of the energy generated by the
engine] actually moves the driver down the road, so using the energy given off from braking into a
hybrid electric motor is an excellent way to transition to a zero-emission alternative."
Mr. Krupp trumpeted: "Environmental Defense now challenges other companies to step up to the
plate and meet the green standard set by FedEx."
UPS is working toward setting its own
green standard, and it may be positioning itself to surpass FedEx. UPS introduced its first and
only hybrid electric vehicle into its fleet in Huntville, Alabama in October 2001, and it has
introduced 13 Chrylser Electric Powered Interurban Commuter (EPIC) minivans into its Los Angeles
fleet. Now, UPS is making the transition from low-emission to no-emission technology with the
introduction of fuel-cell powered vehicles.
Fuel cells convert the energy generated in
the chemical reaction between hydrogen and oxygen into electricity without combustion, and hence
without creating exhaust emissions. By late 2003, UPS will introduce one DaimlerChrysler "F-Cell"
vehicle for use in early-morning deliveries in the Ann Arbor, Michigan area, where EPA is providing
access to its hydrogen refueling station. UPS plans add more fuel cell vehicles to its fleet in
2004.
"Environmental improvements like this and the needs of business are not
incompatible," said Tom Weidemeyer, chief operating officer of UPS and president of UPS Airlines.
"It's time to deploy this technology in a commercial fleet and learn exactly what's needed to make
it broadly available."
Mr. Adams confirmed the value of test deploying fuel cell vehicles
in a commercial fleet. The Rocky Mountain Institute considers fuel cells to be a preferable
solution to the dilemma of fossil-fuel based transportation systems.
"The best way to
start the transition in transportation solutions is through fleet vehicle services, such as package
delivery businesses that are fueled in a central depot and maintained under the same umbrella
organization so that their data can be monitored and analyzed to update and advance fuel cell
technology," said Mr. Adams
"We're ultimately in favor of the fuel cell vehicles over
the transitional diesel hybrid technology," Mr. Adams told SocialFunds.com.
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SRI World Group, Inc. All Rights Reserved.
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