Clean Energy Forms Joint Venture with Energy Gas del Peru to Bring Large-Scale, Clean-Burning Natural Gas Fueling Services to Peruvian Transit and Taxi Vehicles
SEAL BEACH, Calif.--(BUSINESS WIRE)--Clean Energy Fuels Corp. (Nasdaq:CLNE - News), 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 EnergyClean Energy (Nasdaq: CLNE - News), 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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Source: Clean Energy