UPS, a package delivery company, has expanded its growing alternative-fuel vehicle (AFV) fleet with the addition of 130 hybrid electric vehicles (HEV), which will be deployed next year, with 30 going to New York and New Jersey and 100 to California.

The deployment of HEVs is expected to help UPS save 66,085 gallons of fuel and 671 metric tonnes of CO2 annually, representing a 35% improvement in fuel economy, thereby advancing UPS’ sustainable business practices to reduce its impact on the environment.

The hybrid electric power system combines a conventional diesel engine with a battery pack, which gets electricity from energy generated from braking, to deliver saving fuel and emissions reduction.

UPS’ AFV fleet, which currently consists of 250 HEV delivery vehicles, features two different size vehicles from Freightliner Custom Chassis and a hybrid drive system from Eaton.

Besides hybrid electric vehicles, the AFV fleet which has cost the company more than $25m for development, includes other fuels as compressed natural gas, liquefied natural gas, propane and all-electric.

UPS director of vehicle engineering Mike Britt said that hybrid electric technology has proven itself to be effective in the field and the company is eager to receive these new HEVs in 2011 and get them on the road as part of its overall environmental strategy.