Penske Truck Leasing has announced its expansion of use of renewable diesel in California through a preferred supplier agreement with Shell Oil Products U.S. (“Shell”). The move is a continuing effort by Penske to help reduce emissions across its truck rental, heavy-duty truck leasing and logistics fleet operations.
“In California, renewable diesel provides a realistic pathway for fleets to reduce emissions from well to wheel as the industry continues to decarbonize,” said Josh Tippin, vice president, energy and fuel supply at Penske Transportation Solutions. “Collaborators like Shell are essential in supporting our fleet sustainability efforts by securing and supplying lower-carbon fuel sources such as renewable diesel and collaborating with us on other carbon reduction initiatives.”
All vehicles refueling at Penske Truck Leasing’s 32 locations equipped with fuel islands in California are now receiving renewable diesel at its pumps. Penske plans to expand its use of renewable diesel in other markets as supply increases, and as carbon compensation programs for replacing traditional diesel fuel with renewable diesel become more widely available.
According to the California Energy Commission and California Department of Tax and Fee Administration statistics, approximately 3 billion gallons of diesel fuel is sold annually in the state, with only about a third being sold as renewable diesel.
Penske first piloted renewable diesel in Southern California for several months to ensure there were no adverse effects on vehicles or their operation. To the contrary, Penske found an overall net positive effect on the vehicles related to renewable diesel. Of note were reduced maintenance-related issues along with the added benefits of lower overall emissions and a cleaner fuel compared with traditional ultra-low sulfur diesel. The renewable diesel provided by Shell is fully compatible with all diesel engines and has a higher cetane level.
Penske has been working closely with Shell to progress decarbonization of the road transport sector, launching sustainable solutions across its operations. For example, Penske is currently installing approximately 100 Level 2 electric vehicle chargers in six states during 2022. This is in collaboration with Shell Recharge Solutions to support Penske’s growing fleet of light-duty electric rental trucks.