Clean Energy Delivers Record 50.6 Million CNG Gallons in Q3; Expands Market Reach by Acquiring Controlling Interest in NG Adv...
October 15 2014 - 6:01AM
Business Wire
Clean Energy Fuels Corp. (NASDAQ: CLNE) today reported it
delivered for the first time over 50 million compressed natural gas
(CNG) gallons in one quarter. The company plans to grow its CNG
sales further with a strategic move to expand its CNG market to
large industrial and institutional energy users beyond the nation’s
natural gas pipeline by acquiring a controlling interest in NG
Advantage LLC, a pioneer in the natural gas “virtual pipeline”
delivery system. The NG Advantage investment will primarily be used
to fund capital expenditures for expansion and growth in the
business. Clean Energy will also purchase NG Advantage’s Milton,
Vt., compression station which is on track to supply nearly 16
million gasoline-gallon-equivalents (GGEs) of CNG annually. This
station will immediately become Clean Energy’s highest-volume
station in its nationwide network of almost 500 stations.
“The NG Advantage purchase is a perfect example of Clean
Energy’s focus on aggressively pursuing new market opportunities to
help rapidly grow our CNG gas sales,” said Andrew J. Littlefair,
President and CEO of Clean Energy. “Our record growth in overall
delivered gallons combined with the new market reach of NG
Advantage positions Clean Energy to keep growing as our trucking
business develops.”
Littlefair added, “We immediately recognized the potential in NG
Advantage as a powerful partnership combining Clean Energy’s
leadership in natural gas fueling and compressor technology with NG
Advantage’s market presence and pioneering delivery system. NG
Advantage’s groundbreaking ‘virtual pipeline’ currently brings
natural gas to new markets in the Northeast with the potential of
expanding to other areas in North America that do not have direct
access to natural gas pipelines.”
NG Advantage’s founder and president, Tom Evslin, will remain
with the company as CEO and its second largest investor, and will
continue to oversee operations from its Milton offices. Founded
less than four years ago, the company and the acceptance of the
“virtual pipeline” have grown rapidly. As a result of this
partnership, Clean Energy expects a significant increase in
delivered CNG volume day one and forecasts rapid growth as NG
Advantage expands with Clean Energy’s existing station network and
new stations built with compressors from its IMW subsidiary.
“Rising and unpredictable fuel costs have made it exceptionally
difficult for manufacturers and facilities without access to the
nation’s natural gas pipeline network to compete in an increasingly
competitive marketplace,” said Evslin. “NG Advantage is forging a
new industry which meets this need, and the partnership with Clean
Energy ensures our customers will be working with the most
experienced natural gas fuel provider at every step in the process.
Clean Energy had the foresight to establish the country’s largest
network of compression stations. Although they were originally
built for vehicle fueling, they compress gas to exactly the
pressure we need to fill our trailers and we expect many will be
suitable for co-location. We look forward to using this network to
rapidly bring the benefits of natural gas to enterprises beyond the
pipeline nationwide.”
Founded in 2011, NG Advantage has created a new industry
transporting CNG in high-capacity trailers to large industrial and
institutional energy users such as hospitals, food processors,
manufacturers and paper mills. The CNG is transported in its fleet
of tanker trucks, offloaded and used to replace fuel-oil and
propane which can save customers up to 40 percent on fuel costs
while reducing greenhouse gas emissions by up to 26 percent.
Companies burning coal can reduce their CO2 emissions by 50% when
converting to natural gas.
NG Advantage has exclusive long-term contracts with more than 20
energy-intensive organizations served by its Milton, Vt.,
compression facility and the newly-opened Pembroke, N.H., facility.
The Pembroke facility utilizes six IMW compressors which can fill
approximately 3,500 CNG gallons per hour. The facility is owned and
operated by Clean Energy.
About Clean Energy Fuels Corp.
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.
About NG Advantage LLC
NG Advantage is an innovative fuel provider trucking compressed
natural gas (CNG) in the U.S. – bringing the economic and
environmental benefits of North American natural gas to large
institutions and industrial customers without access to a pipeline.
The Company’s current customers include hospitals, paper mills,
asphalt facilities, food processors, industrial dry cleaners, LDCs,
and light manufacturing facilities. With a compressor station in
Vermont, in southern New Hampshire and a third in permitting in the
greater Albany area, the Company currently serves customers in
Vermont, New Hampshire, Massachusetts and eastern New York. For
more information, visit www.NGadvantage.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 that involve risks,
uncertainties and assumptions, including statements about the
anticipated benefits of Clean Energy’s investment in NG Advantage
and the station purchase, the advantages of natural gas relative to
fuel-oil and propane, anticipated sales of CNG, and the ability of
Clean Energy and NG Advantage to use Clean Energy’s network of
compression stations to bring the benefits of natural gas to
enterprises beyond the pipeline nationwide. Actual results and the
timing of events could differ materially from those anticipated in
these forward-looking statements as a result of several factors,
including, but not limited to, changes in the price of natural gas
fuel relative to fuel-oil, propane and other energy sources, lack
of demand for CNG, changes in governmental regulations, and the
capabilities of Clean Energy’s network of compression stations. The
forward-looking statements made herein speak only as of the date of
this press release and, unless otherwise required by law, the
company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or
circumstances. Additionally, the reports and other documents Clean
Energy files with the SEC (available at www.sec.gov) contain risk
factors, which may cause actual results to differ materially from
the forward-looking statements contained in this news release.
Clean Energy Media Contact:Patric Rayburn,
949-437-1411patric.rayburn@cleanenergyfuels.comorClean Energy
Investor Contact:Tony Kritzer,
949-437-1403tkritzer@cleanenergyfuels.comorNG Advantage Media
Contact:Mary Evslin, 802-498-4674mevslin@ngadvantage.com
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