Clean Energy and Total Sign Joint Venture to Develop Carbon-Negative Fuel and Infrastructure
March 04 2021 - 6:00AM
Business Wire
Up to $400 Million of Equity Including
Credit Support Available for Upstream Renewable Natural Gas
Projects and Downstream Fueling
Clean Energy Fuels Corp. (Nasdaq: CLNE) and its largest
shareholder, Total SE, today announced 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. The initial firm
commitment is $100 million and can increase to $400 million as
development opportunities progress. Since Clean Energy and Total
will be providing the equity portion of the investments, the actual
amount of capital invested in RNG projects may be higher than $400
million depending on the amount of leverage that is deployed. In
addition, Total will be providing credit support for Clean Energy
development in the RNG value chain, including $45 million for
contracted RNG fueling infrastructure.
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the full release here:
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Carbon-negative RNG is produced when carbon emissions are
captured from dairies and turned into a transportation fuel,
reducing the harmful effects of long-term climate change. As a
result, the California Air Resources Board gives these
carbon-negative RNG projects a weighted average carbon intensity
(“CI”) Score (gCO2e/MJ) of -317 compared to 100 for diesel and 19
for electric batteries. Clean Energy is the largest provider of RNG
as a transportation fuel in the United States, and the largest RNG
fuel provider under the California LCFS program. RNG can be used
directly as a vehicle fuel or can be used as a feedstock to produce
“green” hydrogen or “green” electricity and still generate LCFS
environmental credits.
The companies have already partnered to expand the use of RNG in
the heavy-duty truck market with the Zero Now program, which allows
fleets to purchase RNG trucks for the same price as diesel trucks.
The demand for carbon-negative RNG 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.
“The finalization of this JV with Total, which was originally
announced in December of last year, demonstrates the commitment
both companies have to the growth of RNG, a fuel that can tackle
serious climate issues today,” said Andrew J. Littlefair, CEO and
president of Clean Energy. “The demand by customers for RNG
continues to accelerate, highlighted by our recent announcement
that the largest bus fleet in the U.S., LA Metro, had converted
their entire fleet to RNG. This JV will help Clean Energy to
continue to increase its supply of RNG in the years ahead.”
About Clean Energy
Clean Energy Fuels Corp. is the leading provider of the cleanest
fuel for the transportation market in the United States. Through
its sales of 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 from 60% to over 400% according to
the California Air Resources Board, depending on the source of the
RNG. Clean Energy can deliver RNG 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 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 amount of capital that may be invested in
RNG projects by the JV; 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 RNG vehicle fuel;
the strength of Clean Energy’s vehicle fueling infrastructure and
its ability to leverage this infrastructure to increase sales of
RNG vehicle fuel and to deliver 100% 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 invest in RNG projects through the JV; 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/20210304005231/en/
Clean Energy Contact: Raleigh Gerber 949-437-1397
raleigh.gerber@cleanenergyfuels.com
Investor Contact: investors@cleanenergyfuels.com
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