Clean Energy and BP to Expand Renewable Natural Gas Supply Agreement
October 11 2018 - 6:00AM
Business Wire
Growing Number of Fleets Are Asking for the
Clean Fuel
BP p.l.c. (NYSE: BP) and Clean Energy Fuels Corp. (Nasdaq: CLNE)
today announced an agreement which will secure an increased supply
of renewable natural gas (RNG) for Clean Energy through Clean
Energy’s extensive fueling infrastructure as more fleets are
requesting the clean fuel. The agreement enables BP to flow larger
volumes to Clean Energy stations as the supply of RNG is expected
to rapidly grow over the next several years with a number of new
RNG production facilities under construction and more announced. In
turn, Clean Energy will share in the incremental environmental
credit revenues generated from the incremental RNG volume.
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Renewable natural gas fuel, or biomethane, is produced entirely
from organic waste. As a fuel for natural gas vehicles, including
heavy-duty trucks, it is estimated to result in 70 percent lower
greenhouse gas emissions than from equivalent gasoline or diesel
fuel vehicles, which makes it the cleanest fuel available anywhere.
Clean Energy has grown sales of its Redeem™ branded RNG from 22
million gasoline equivalent gallons (GGEs) in 2014, the first full
year it was available, to an expected 100 million GGEs in 2018.
“The growth of our Redeem RNG has been astounding as
municipalities and companies all over the country are achieving
their sustainability and greenhouse gas reduction goals by
switching their fleets,” said Andrew J. Littlefair, Clean Energy’s
president and chief executive officer. “This agreement combines
BP’s significant investments in RNG projects and supply network
with Clean Energy’s vehicle fueling network and will help to create
certainty for future RNG project development and continue to
accelerate adoption of natural gas vehicle fueling.”
“As one of the largest suppliers of renewable natural gas to the
U.S. transportation sector, BP is committed to supporting the
transition to a lower-carbon energy future,” said Sean Reavis, BP
senior vice president – global environmental products. “Our
agreement with Clean Energy reflects that commitment, and we
believe today’s announcement will help to accelerate the growth of
RNG and promote a more sustainable energy mix.”
Redeem™ renewable natural gas is derived from biogenic methane,
biomethane or biogas, which is methane that is naturally generated
by the decomposition of organic waste. The methane gas is
processed, purified and sent into the interstate natural gas
pipeline and is currently made available exclusively to Clean
Energy customers.
About Clean Energy:
Clean Energy Fuels Corp. is the leading provider of natural gas
fuel and renewable natural gas (RNG) fuel for transportation in the
United States and Canada, with a network of approximately 530
stations across North America that we own or operate. We build and
operate compressed natural gas (CNG) and liquefied natural gas
(LNG) stations and deliver more CNG, LNG and RNG vehicle fuel than
any other company in the U.S. Clean Energy sells Redeem™ RNG fuel
and believes it is the cleanest transportation fuel commercially
available, reducing greenhouse gas emissions by up to 70%. Clean
Energy owns natural gas liquification facilities in California and
Texas which produce LNG for the transportation and other markets.
For more information, visit www.CleanEnergyFuels.com.
About BP:
BP is a global producer of oil and gas with operations in over
70 countries. BP has a larger economic footprint in the U.S. than
in any other nation, and it has invested more than $100 billion
here since 2005. BP employs about 14,000 people across the U.S. and
supports more than 106,000 additional jobs through all its business
activities. For more information on BP in America, visit
www.bp.com/us.
Forward-Looking Statements
This press 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, including
statements about, among other things: the potential impact of the
agreement between Clean Energy and BP on Clean Energy’s business
and performance; the volume of Redeem expected to be sold by Clean
Energy in 2018; and the benefits of renewable natural gas as an
alternative vehicle fuel.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual achievements,
performance or other events to be materially different from any
future achievements, performance or other events expressed or
implied by the forward-looking statements. Factors that might cause
or contribute to such differences include, among others: future
supply, demand, use and prices of crude oil, gasoline, diesel,
natural gas, other vehicle fuels, and heavy-duty trucks and other
vehicles and engines powered by these fuels, including overall
levels of and volatility in these factors; the willingness of
fleets and other consumers to adopt renewable and conventional
natural gas as a vehicle fuel, and the rate of any such adoption;
Clean Energy’s ability to capture a substantial share of the market
for alternative vehicle fuels and vehicle fuels generally and
otherwise compete successfully in these markets; Clean Energy’s
ability to accurately predict renewable and conventional natural
gas vehicle fuel demand in the geographic and customer markets in
which it operates and effectively calibrate its strategies, timing
and levels of investments to be consistent with this demand; Clean
Energy’s ability to recognize the anticipated benefits of its
fueling station network; Clean Energy’s ability to manage and grow
its renewable natural gas business; changes to federal, state or
local greenhouse gas emissions regulations or other environmental
regulations applicable to natural gas production, transportation or
use; and general political, regulatory, economic, market and other
conditions.
As a result of these and other potential risks
and uncertainties, the forward-looking statements made in this
press release should not be relied on or viewed as predictions of
future events. All forward-looking statements in this press release
are made only as of the date of this press release and, except as
required by law, Clean Energy undertakes no obligation to update
publicly any forward-looking statements for any reason, including
to conform these statements to actual results or to changes in
expectations. Additionally, the reports and other documents Clean
Energy files with the Securities and Exchange Commission, available
at www.sec.gov, contain additional information about these and
other risk factors that may cause actual results to differ
materially from the forward-looking statements contained in this
press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181011005149/en/
Clean Energy Contact:Raleigh Gerber,
949-437-1397Raleigh.gerber@cleanenergyfuels.comorInvestors
Contact:investors@cleanenergyfuels.com
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