Fred Meyer Announces Arrival of First Liquefied Natural Gas Trucks
PORTLAND – December 4, 2014 – Fred Meyer Stores, a division of The Kroger Co. (NYSE: KR) announced today the arrival of the first 11 heavy-duty trucks that run on liquefied natural gas (LNG). Fred Meyer will receive a total of 40 LNG trucks over the next several months, making Fred Meyer the first in Oregon to deploy a fleet of heavy-duty LNG trucks.
The new LNG trucks will replace 40 diesel trucks currently in use, and will deliver product to Fred Meyer stores as far south as Corvallis, Ore., and as far north as Longview, Wash. Some of the 40 diesel trucks will be used to replace older, less efficient diesel trucks in the fleet.
“Fred Meyer is pleased to be the first in Kroger’s process of transitioning the Kroger fleet to alternative fuels,” said Lynn Gust, president of Fred Meyer Stores. “Converting to LNG trucks allows us to reinvest savings into lower prices while also providing a great benefit to the environment.”
The trucks will average approximately 175 miles per day, six days a week, 52 weeks a year. They are expected to reduce greenhouse gas emissions by approximately 755 metric tons per year, which equates to removing approximately 159 passenger cars from the road annually. The trucks are manufactured at Freightliner’s North Carolina plant.
The fleet will be fueled at a new, private LNG fueling station at Fred Meyer’s Clackamas Distribution Center, which has been designed and engineered by Clean Energy Fuels Corp. (NASDAQ: CLNE). Clean Energy will also supply the liquefied natural gas for the fueling station, and once all 40 trucks are active, Clean Energy will supply the approximately one million gallons a year needed to service them.
The use of LNG not only reduces operating costs for vehicles, but also reduces greenhouse gas emissions up to 23 percent in medium- to heavy-duty vehicles. It is also a safer fuel than diesel – it is the same natural gas used in homes, but is cooled to negative 260 degrees and is not under pressure.
“LNG is a viable alternative fuel for Kroger in the future,” said Ashley White, logistics sustainability manager for The Kroger Co. “It will serve as a bridge between traditional fossil fuels and emerging renewable fuels and technologies. We are committed to this very important work.”
Kroger has invested $6.5 million in the project and has received a $490,000 grant from the Federal Highway Administration via ODOT for the LNG infrastructure. Kroger has applied for $360,000 in grant funding from the Oregon Department of Environmental Quality to retire nine diesel trucks and completely replace them with LNG trucks.
More information about Kroger’s transportation sustainability efforts can be found at http://sustainability.kroger.com.
About Fred Meyer:
Fred Meyer Stores, based in Portland, Ore., offers one-stop shopping at its 132 multi-department stores in four western states. More than 30,000 Fred Meyer associates help customers fill their food, apparel, and general merchandise needs in Alaska, Idaho, Oregon and Washington. Stores range in size from 65,000 to 200,000 square feet and carry more than 250,000 products under one roof. Additionally, Fred Meyer contributes more than $4 million to communities across the Northwest each year through grants from the Fred Meyer Foundation as well as product donations, cash donations and sponsorships. Fred Meyer also donates more than 4 million pounds of food to local food banks each year via the Perishable Donation Program. Fred Meyer Stores is a division of The Kroger Co. (NYSE: KR). For more information, please visit our Web site at www.fredmeyer.com.
About Kroger:
Kroger, one of the world’s largest retailers, employs more than 375,000 associates who serve customers in 2,631 supermarkets and multi-department stores in 34 states and the District of Columbia under two dozen local banner names including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry’s, Harris Teeter, Jay C, King Soopers, QFC, Ralphs and Smith’s. The company also operates 783 convenience stores, 325 fine jewelry stores, 1,293 supermarket fuel centers and 37 food processing plants in the U.S. Recognized by Forbes as the most generous company in America, Kroger supports hunger relief, breast cancer awareness, the military and their families, and more than 30,000 schools and grassroots organizations. Kroger contributes food and funds equal to 200 million meals a year through more than 100 Feeding America food bank partners. A leader in supplier diversity, Kroger is a proud member of the Billion Dollar Roundtable and the U.S. Hispanic Chamber’s Million Dollar Club.
About Clean Energy:
Clean Energy Fuels Corp. (Nasdaq: CLNE) is the leading provider of natural gas fuel for transportation in North America. We build and operate compressed natural gas (CNG) and liquefied natural gas (LNG) fueling stations; manufacture CNG and LNG equipment and technologies for ourselves and other companies; develop renewable natural gas (RNG) production facilities; and deliver more CNG, LNG and Redeem RNG fuel than any other company in the U.S. For more information, visit www.cleanenergyfuels.com.
