Clean Energy and Total to Develop Additional Carbon-Negative Fuel and Infrastructure
December 21 2020 - 6:00AM
Business Wire
Up to $145 Million Available for Upstream
Renewable Natural Gas Projects and Downstream Fueling
Clean Energy Fuels Corp. (Nasdaq: CLNE) and its largest
shareholder, Total S.E., today announced a memorandum of
understanding to create a 50/50 joint venture to develop
carbon-negative renewable natural gas (RNG) production facilities
in the United States, as well as credit support to build additional
downstream RNG fueling infrastructure. Total will provide $50
million and Clean Energy $30 million for the proposed joint venture
and Total will be providing credit support of $65 million to
support Clean Energy development in the RNG value chain, including
$45 million for contracted RNG fueling infrastructure.
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The companies have already partnered to expand the use of RNG in
the heavy-duty truck market with its Zero Now program, which allows
fleets to purchase natural gas trucks for the same price as diesel
trucks. The demand for carbon-negative RNG, which is derived from
dairies and other agricultural facilities, has rapidly accelerated
through the Zero Now program with trucking companies such as Kenan
Advantage, KeHE Distributors, Estes Express Lines, Tradelink
Transport, among many others, taking advantage of the economic
savings while powering their new fleets with the cleanest fuel in
the world.
Negative-carbon RNG is produced when carbon emissions are
captured from dairies and turned into a transportation fuel,
reducing the harmful effects on long-term climate change. As a
result, the California Air Resources Board gives these
carbon-negative RNG projects a carbon intensity (“CI”) Score
(gCO2e/MJ) of -250 (or lower) compared to 97 for diesel and 46 for
electric batteries. Clean Energy is the largest provider of RNG as
a transportation fuel in the United States and Canada, and the
largest RNG fuel provider under the California LCFS program.
“We are very fortunate to have a partner in Total that is so
supportive on a number of levels,” said Andrew J. Littlefair, CEO
and president of Clean Energy. “Both our companies have recognized
the enormous opportunity that a carbon-negative fuel can play in
our ambitious efforts to combat climate change. This new agreement
will allow Clean Energy to increase the flow of low-CI RNG as the
demand expands, as well as the capital to build new fueling
stations for additional contracted fleets.”
Clean Energy’s goal is to meet the rapidly growing demand by
customers for carbon-negative RNG and to deliver 100% Redeem™
branded RNG to its entire fueling infrastructure by 2025, which it
is well on its way to achieving.
About Clean Energy
Clean Energy Fuels Corp. is the leading provider of the cleanest
fuel for the transportation market in the United States and Canada.
Through its sales of Redeem™ renewable natural gas (RNG), which is
derived from capturing biogenic methane produced from decomposing
organic waste, Clean Energy allows thousands of vehicle fleets,
from airport shuttles to city buses to waste and heavy-duty trucks,
to reduce their amount of climate-harming greenhouse gas by at
least 70% and even up to 300% depending on the source of the RNG.
Clean Energy can deliver Redeem through compressed natural gas
(CNG) and liquified natural gas (LNG) to its network of
approximately 540 fueling stations across the U.S. and Canada.
Clean Energy builds and operates CNG and LNG fueling stations for
the transportation market, owns natural gas liquefication
facilities in California and Texas, and transports bulk CNG and LNG
to non-transportation customers around the U.S. For more
information, visit www.CleanEnergyFuels.com.
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 that involve
risks, uncertainties and assumptions, such as statements regarding,
among other things: the completion and timing of the transaction
contemplated by the Memorandum of Understanding (“MOU”); Clean
Energy’s plans for its RNG business; increased market adoption of
carbon-negative RNG as a vehicle fuel; growth in Clean Energy’s
customer base for its Redeem™ RNG vehicle fuel; the strength of
Clean Energy’s vehicle fueling infrastructure and its ability to
leverage this infrastructure to increase sales of Redeem™ vehicle
fuel and to deliver 100% Redeem™ branded RNG to its entire fueling
infrastructure by 2025; the benefits of RNG as an alternative
vehicle fuel, including economic and environmental benefits; and
growth in and certainty of supply of RNG. Actual results and the
timing of events could differ materially from those expressed in or
implied by these forward-looking statements as a result of a
variety of factors, including, among others: Clean Energy’s and
TOTAL’S ability to close the joint venture contemplated by the MOU
on the timeline anticipated or at all; supply, demand, use and
prices of crude oil, gasoline, diesel, natural gas and alternative
fuels, as well as heavy-duty trucks and other vehicles powered by
these fuels; the willingness of fleets and other consumers to adopt
RNG as a vehicle fuel; and general economic, political, regulatory,
market and other conditions. The forward-looking statements made in
this press release speak only as of the date of this press release
and Clean Energy undertakes no obligation to update publicly such
forward-looking statements to reflect subsequent events or
circumstances, except as otherwise required by law. Additionally,
the reports and other documents Clean Energy files with the SEC
(available at www.sec.gov) contain additional information on these
and other risk factors that may cause actual results to differ
materially from the forward-looking statements contained in this
press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20201221005177/en/
Clean Energy Contact: Raleigh Gerber 949-437-1397
raleigh.gerber@cleanenergyfuels.com Investor Contact:
investors@cleanenergyfuels.com
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