LA Metro Awards Multi-Year Contract for Clean Energy’s Redeem™
May 26 2017 - 6:00AM
Business Wire
Renewable Natural Gas to Fuel Nation’s
Largest CNG Bus Fleet
Clean Energy Fuels Corp. (Nasdaq: CLNE) announced today that the
Los Angeles County Metropolitan Transportation Authority (Metro)
has awarded Clean Energy a renewable natural gas (RNG) contract to
fuel its fleet of transit buses. The deal calls for Clean Energy to
provide Metro its Redeem™ brand of RNG, the first renewable and
commercially available vehicle fuel made entirely from 100% organic
waste.
The fueling contract begins with a one-year pilot where Clean
Energy will provide Redeem to one of Metro’s eleven compressed
natural gas stations, which are currently operated and maintained
by Clean Energy. Each station provides fuel for approximately 200
CNG buses. Execution of an additional option will allow Clean
Energy to provide Redeem to the entire fleet of 2,200 natural gas
buses for four more years, for an anticipated 38 million gasoline
gallon equivalents (GGEs) each year.
Over the five-year period, the transition to RNG will reduce
Metro’s greenhouse gas (GHG) emissions by over 520,000 metric tons
over the use of regular natural gas and by almost 900,000 metric
tons over the use of diesel. Unrelated to the use of Redeem, Metro
will begin retrofitting and replacing their buses with the new
Cummins-Westport Low NOx CNG engines that reduce smog-forming NOx
and GHG emissions that are 90% lower than the EPA NOx limit.
“As one of the largest transit agencies in the nation, we take
our responsibility to the environment and the taxpayers very
seriously,” said Cris B. Liban, Metro Executive Officer for
Environment and Sustainability. “The use of RNG allows us to
further exceed our environmental goals and reduce our reliance on
the use of extracted fossil fuels, while ensuring the seamless
transition to a cleaner, greener fleet.”
Redeem is derived from biogenic methane or biogas, which is
methane that is naturally generated by the decomposition of organic
waste. The methane gas is then processed, purified and sent into
the interstate natural gas pipeline and transported to Clean
Energy’s and its customers’ stations.
“We are continuously assessing new technologies in
transportation and perform a rigorous analysis before adopting
anything,” said John Drayton, Metro Director of Vehicle Technology.
“In this case, transitioning to renewable natural gas along with
the use of low NOx engines reduces our fleet’s NOx emissions by
90%, so it was an easy decision.”
“Metro is putting the needs of its customers and the people of
Los Angeles County at the forefront in its decision to switch to
Redeem and the latest clean engine technology,” said Tyler Henn,
Vice President and General Manager of Clean Energy Renewables.
“They have chosen an alternative that will make significant strides
in cleaning up the air and reducing harmful air toxins and
greenhouse gases at an affordable price.”
About Clean Energy
Clean Energy Fuels Corp. is the leading provider of natural gas
fuel for transportation in North America. We build and operate CNG
and LNG vehicle fueling stations, manufacture CNG and LNG equipment
and technologies, develop RNG production facilities, and deliver
more CNG and LNG vehicle fuel than any other company in the U.S.
Clean Energy also sells Redeem RNG fuel and believes it is the
cleanest transportation fuel commercially available, reducing
greenhouse gas emissions by up to 70%. For more information,
visit www.CleanEnergyFuels.com.
About Metro
The Los Angeles County Metropolitan Transportation Authority
(Metro) is unique among the nation’s transportation agencies.
Created in 1993, Metro is a multimodal transportation agency that
transports about 1.3 million passengers daily on a fleet of 2,200
clean air buses and six rail lines. The agency also oversees bus,
rail, highway and other mobility-related building projects and
leads transportation planning and programming for Los Angeles
County.
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 without limitation
statements about amounts of RNG expected to be consumed by Metro.
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, without limitation, execution
of the contract option. 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 the Company 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170526005122/en/
Clean EnergyJason Johnston -
Media+1-949-437-1411jason.johnston@cleanenergyfuels.comorTony
Kritzer - Investors+1-949-437-1403tkritzer@cleanenergyfuels.com
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