Driving The Alternative Fuel Movement, Frito-Lay Unveils Investment In Compressed Natural Gas Infrastructure

Frito-Lay Announces Plans to Break Ground on Seven Public CNG Fueling Stations Across the U.S., Providing Fuel for the Expanding CNG Market

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Frito-Lay North America

Jun 19, 2013, 07:00 ET

PLANO, Texas, June 19, 2013 /PRNewswire/ -- Senior leadership from PepsiCo's Frito-Lay North America division were joined today by representatives from the Department of Energy and the State of Wisconsin to unveil Frito-Lay's inaugural Compressed Natural Gas (CNG) fueling station in Beloit, Wis. The station opening is part of Frito-Lay's large-scale commitment to alternative fuel. In 2013, the company will break ground on seven public CNG fueling stations across the U.S. and continue to grow its CNG fleet, bringing the total number of its CNG tractors to 208.

CNG tractors use an abundant, domestic natural gas fuel and emit less greenhouse gas than diesel tractors. Once deployed, the 208 CNG tractors will make up 20 percent of Frito-Lay's fleet and will be located at 50 percent of production locations, making Frito-Lay's CNG fleet one of the largest CNG fleets in the U.S.

The new CNG fueling stations will not only provide fuel for these tractors and help pave the way for more CNG vehicles to be introduced into the Frito-Lay fleet, but will also make available fuel for other companies currently using or considering alternative fuel vehicles in the future. The seven new fueling stations, along with three other stations that will be in operation this year, will begin at a total expected annual volume of two million gallons and grow to a little over eight million gallons in five years.

"This initiative to build much-needed natural gas infrastructure for large commercial vehicles is part of Frito-Lay's deep commitment to the environment," said Mike O'Connell, Senior Director for Fleet Operations, Frito-Lay North America. "When all 208 CNG tractors are in service, Frito-Lay will eliminate 7,863 metric tons of carbon emissions, the equivalent of over 1,125 cars annually."

In 2012, Frito-Lay issued an industry-leading, multi-site competitive Request-For-Proposal (RFP) to potential partners, guaranteeing to purchase a base volume from that vendor's station once built – giving vendors the support they need to justify building natural gas infrastructure. Questar Fueling and Trillium CNG™ were selected as the two vendors that will build the seven new CNG fueling stations. Frito-Lay's investment in Beloit was also supported by the State of Wisconsin and the Department of Energy.*

"Trillium and Questar were able to demonstrate depth and breadth of industry knowledge through the RFP process." O'Connell noted. "They really rose to the top as trusted partners, and we look forward to working with them."

Trillium CNG has more than 20 years of expertise in designing, installing and operating heavy-duty high performance CNG stations with the lowest lifecycle cost and an ultra-fast refueling experience. In addition to building the station in Beloit, Wis., Trillium will be responsible for building CNG stations in: Jonesboro, Ark.; Orlando, Fla.; Charlotte, N.C.; Rosenberg, Texas; and Perry, Ga.

Questar has more than 25 years of CNG experience and will be responsible for building stations in Killingly, Conn., and Topeka, Kan.

In the U.S., Frito-Lay hopes to reduce its total fuel consumption and greenhouse gas emissions by 50 percent by 2020, compared to 2007 baseline. This effort supports PepsiCo's commitments to environmental sustainability, particularly in fuel and greenhouse gas reduction. Frito-Lay, in addition to CNG vehicles, has introduced all-electric trucks to its delivery fleet. In 2012 the company announced it would purchase 100 all-electric commercial vehicles from Smith Electric Vehicles, bringing the total number of its electric fleet to more than 280. These electric trucks eliminate the need for approximately 500,000 gallons of diesel fuel each year.

About Frito-Lay North America

Frito-Lay North America is the $13 billion convenient foods business unit of PepsiCo (NYSE: PEP), which is headquartered in Purchase, NY. Learn more about Frito-Lay at the corporate website, http://www.fritolay.com, the Snack Chat blog, http://www.snacks.com and on Twitter at http://www.twitter.com/fritolay.

About PepsiCo

PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola – make hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCo's people are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which we believe also means a more successful future for PepsiCo. We call this commitment Performance with Purpose: PepsiCo's promise to provide a wide range of foods and beverages for local tastes; to find innovative ways to minimize our impact on the environment by conserving energy and water and reducing packaging volume; to provide a great workplace for our associates; and to respect, support and invest in the local communities where we operate. For more information, please visit http://www.pepsico.com/.

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About Trillium CNG

Trillium is a leading provider of compressed natural gas facility design, construction, operation and maintenance. We specialize in fueling heavy-duty fleets that require high-performance solutions. For more information, visit TrilliumCNG.com

About Questar Fueling

Questar Fueling is a subsidiary of Questar, a Rockies-based integrated natural gas company with an enterprise value of about $5.5 billion, operating through four principal subsidiaries: Questar Gas distributes natural gas in Utah, Wyoming and Idaho; Wexpro Company develops and produces natural gas; and Questar Pipeline operates interstate natural gas pipelines and storage facilities in the western U.S.

*This material is based upon work partially supported by the U.S. Department of Energy under Award Number DE-EE0000163 and flowed through the Wisconsin Department of Administration State Energy Office and the Wisconsin Economic Development Corporation

This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.

SOURCE Frito-Lay North America