Clean Energy Subsidiary Signs Long-Term Deal to Sell “Green” Gas from Its Texas Landfill Gas Operations
April 06 2009 - 8:00AM
Business Wire
Clean Energy Fuels Corp. (Nasdaq:CLNE), North America�s leader
in clean transportation, has signed a 15-year agreement through its
subsidiary, Dallas Clean Energy, LLC, for the sale of renewable
biomethane produced at the McCommas Bluff landfill in Dallas,
Texas. Beginning in April 2009, the biomethane will be sold at
fixed prices that increase in 2010 and 2011 and then remain fixed
over the remainder of the agreement. The price for the �green� gas
was not disclosed, but represents a significant premium to the
prevailing price for conventional natural gas.
The agreement calls for the sale of up to 4500 MMBtus per day of
biomethane from April 2009 through September 2010 and between
5000�6000 MMBtus per day of biomethane through March 2024. The
actual volumes sold will depend on the gas recovery rates from the
landfill and successful expansion of the gas processing facilities.
Shell Energy North America will act as the purchaser and supply the
biomethane to the end-user � a utility that will use the biomethane
in power generation to help meet applicable Renewable Portfolio
Standards. Atmos Energy Corporation will provide intrastate
transportation services from the gas processing plant.
�This gas sale agreement validates selling renewable biomethane
as a valuable, low carbon fuel. It provides Clean Energy with a
sound, long-term revenue stream and also supports expansion of the
plant�s production capacity for additional gas sales, including
potential use as vehicle fuel,� said Andrew J. Littlefair, Clean
Energy president and CEO. �Many of our largest customers are
showing interest in biomethane for their fleet vehicles as it is
one of the best alternative fuels to meet new Low Carbon Fuel
Standards coming in California and other states.�
�We will retain the carbon credits related to the biomethane
production and will pursue sales of those credits in the future,�
noted Littlefair.
The interstate �green� gas sale agreement is believed to be one
of the largest such interstate sales of biomethane completed in the
United States.
Clean Energy acquired a 70% ownership interest in Dallas Clean
Energy in August 2008. The McCommas Bluff landfill gas operation
owned by Dallas Clean Energy is one of the largest landfill gas
operations in the United States. The landfill, owned by the City of
Dallas, opened in 1975 and is scheduled to close in 2042. It is
estimated that pipeline quality methane gas will continue to be
produced for approximately 30 years after the landfill closes.
Clean Energy is the leading provider of natural gas (CNG
and LNG) for transportation in North America. It has a broad
customer base in the refuse, transit, ports, shuttle, taxi,
trucking, airport and municipal fleet markets, fueling more than
15,000 vehicles at 176 strategic locations across the United States
and Canada. Clean Energy owns and operates two LNG production
plants, one in Willis, TX and one in Boron, CA, with combined
capacity of 260,000 LNG gallons per day and designed to expand to
340,000 LNG gallons per day as demand increases. It also owns and
operates a landfill gas processing facility in Dallas, TX that
produces renewable biomethane gas for delivery in the nation�s gas
pipeline network. Please visit www.cleanenergyfuels.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 projected volume of biomethane that
will be sold under the gas sale agreement, the revenue that will be
generated from the gas sales, the expansion of the gas processing
facility and the potential gas recovery from the McCommas Bluff
landfill. 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 limited
availability of financing to support plant expansion, any change in
the composition or rates of trash disposal at the McCommas Bluff
landfill, operating costs for the gas processing facility, the gas
processing facility�s capacity and the volume of landfill gas that
is actually produced by the landfill. 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.
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