Clean Energy Forms Joint Venture with Energy Gas del Peru to Bring Large-Scale, Clean-Burning Natural Gas Fueling Services to Pe
August 07 2007 - 8:00AM
Business Wire
Clean Energy Fuels Corp. (Nasdaq:CLNE), through its operating
subsidiary, Clean Energy, and Energy Gas del Peru have formed a new
business entity, Clean Energy del Peru, which will develop and
operate compressed natural gas (CNG) fueling stations to support
the rapidly expanding CNG vehicle population in Peru. The new
company is initiating construction of its first, state-of-the-art
Clean Energy del Peru CNG fueling station, strategically located
midway between downtown Lima, Peru's capital city, and the Lima
International Airport. The station, which is expected to be
operational by October 2007, will feature 13 dual hose fast-fill
CNG fuel dispensers and will have the capability to add four
additional dual hose fast-fill transit dispensers. Today in Lima,
there are more than 11,000 CNG taxis (with more converted each day)
facing long lines due to inadequate fueling facilities and there is
virtually no capability to serve larger transit buses that run on
natural gas. The Peruvian Government actively supports the
transition with a program of incentives to promote the use of
clean-burning natural gas in its transportation sector. The plan
targets the conversion of more than 130,000 public transit buses
and taxis operating in Peru, and will initially be focused on the
more than 60,000 buses and taxis in Lima. Natural gas vehicles are
among the cleanest running on the road, producing significantly
less harmful emissions than gasoline. The shift to natural gas in
the transportation sector also supports the Peruvian Government�s
fuel diversity objectives for public transportation, and will help
make optimal use of Peru�s large domestic natural gas supply. The
natural gas and condensates from Peruvian fields are equivalent to
roughly 2.4 billion barrels of oil, approximately seven times the
size of Peru�s proven oil reserves. �Clean Energy�s joint venture
with Energy Gas del Peru, a unit of a Peru-based energy services
company, is the first strategic growth move for the company outside
the U.S. and Canada,� said Andrew J. Littlefair, Clean Energy�s
President and CEO. �Stated public policy in Peru advocates the
transition to natural gas fuel for transportation,� he said.
�Attractive government financing incentives are available for
vehicle purchase, CNG conversions and station development. Plus, we
expect that CNG can be provided to drivers at favorable prices as
the Peruvian Government�s Ministry of Energy has announced that the
commodity cost of natural gas on a gasoline gallon equivalent basis
for vehicular fuel will remain fixed through 2012. After that,
price increases will be capped at a maximum of five percent.�
Littlefair added, �We expect that our CNG station expertise,
combined with strong governmental CNG policy and significant
available funding, will enable rapid implementation in Lima. These
factors are the driving force behind Clean Energy�s decision to
expand into Peru as the country broadens its commitment to using
clean-burning vehicular natural gas.� About Clean Energy Clean
Energy (Nasdaq: CLNE), based in Seal Beach, California, is North
America�s leader in clean transportation. It has a broad customer
base in the refuse, transit, shuttle, taxi, intrastate and
interstate trucking, airport and municipal fleet markets, fueling
more than 14,000 vehicles daily at strategic locations across the
United States and Canada. The company�s new joint venture, Clean
Energy del Peru, marks Clean Energy�s first entry as a service
provider outside of North America. Information at:
www.cleanenergyfuels.com Safe Harbor Statement 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 that involve risks, uncertainties and
assumptions. 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 the following:
the construction of CNG fueling stations in Peru may experience
unexpected costs and delays, the company may experience unexpected
difficulties expanding its operations outside of the United States
and Canada, and Peruvian government subsidies and other incentives
related to natural gas fuels may not materialize, may be less
beneficial than expected or may cease altogether. The
forward-looking statements made herein speak only as of the date of
this press release and the company undertakes no obligation to
publicly update such forward-looking statements to reflect
subsequent events or circumstances. Additionally, our IPO
prospectus filed with the SEC (www.sec.gov) on May 25, 2007,
contains risk factors that you should consider before investing in
our company.
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