SEAL BEACH, Calif.--(BUSINESS WIRE)--
Dallas Clean Energy McCommas Bluff, LLC, a subsidiary owned 70% by Clean
Energy Fuels Corp. (Nasdaq: CLNE), has arranged for a $40.2 million
tax-exempt bond issuance led by Senior Managing Underwriter
FirstSouthwest Company. The bonds will be repaid from the revenue
generated by Dallas Clean Energy McCommas Bluff, LLC ("Dallas Clean
Energy") from the sale of renewable natural gas (or biomethane). The
bond obligations are secured by the revenue and assets of Dallas Clean
Energy and are non-recourse to Dallas Clean Energy's parent companies
including Clean Energy Fuels Corp.
The bond proceeds will primarily be used to finance further improvements
and expansion of the landfill gas processing facility owned by Dallas
Clean Energy at the McCommas Bluff landfill outside of Dallas, Texas. A
portion of the proceeds will be used to retire an approximately $11.4
million Clean Energy bridge loan.
The bond repayments are amortized through December 2024 and the average
coupon interest rate on the bonds is 6.596%. The bond issuance is
expected to close March 31, 2011.
"This financing provides funds for the highly successful biomethane
facility owned and operated by our Dallas Clean Energy subsidiary and
will enable the plant to increase production," said Andrew J.
Littlefair, Clean Energy President and CEO. "McCommas Bluff is the first
facility in our new Renewable Fuels initiative and now produces more
than nine million gasoline gallon equivalents of renewable biomethane
annually."
While natural gas is 23% cleaner in carbon emissions than diesel in
heavy-duty vehicles — and far cleaner in NOX and PM emissions —
biomethane enables an 88% reduction in carbon emissions when displacing
diesel or gasoline.
The McCommas Bluff landfill — the third largest landfill gas operation
in the United States, opened in 1975 and is scheduled to close in 2042.
It is estimated that pipeline quality biomethane gas will continue to be
produced for approximately 30 years after the landfill closes. The plant
is currently capable of processing 9.4 million cubic feet a day of
landfill gas into approximately 36,000 gasoline gallon equivalents of
pipeline quality biomethane. Dallas Clean Energy plans to increase this
capacity to approximately 14.9 million cubic feet a day and make further
improvements that should enable the production of approximately 60,000
gasoline gallon equivalents a day of pipeline quality biomethane.
About Clean Energy Fuels — Clean Energy (Nasdaq: CLNE) is the
largest provider of natural gas fuel for transportation in North America
and a global leader in the expanding natural gas vehicle market. It has
operations in CNG and LNG vehicle fueling, construction and operation of
CNG and LNG fueling stations, biomethane production, vehicle conversion
and compressor technology.
Clean Energy fuels over 21,200 vehicles at 224 strategic locations
across the United States and Canada with a broad customer base in the
refuse, transit, trucking, shuttle, taxi, airport and municipal fleet
markets. Clean Energy del Peru, a joint venture, fuels vehicles at two
stations and provides CNG to commercial customers in Peru. We own (70%)
and operate a landfill gas facility in Dallas, Texas, that produces
renewable natural gas, or biomethane, for delivery in the nation's gas
pipeline network. We are building a second facility in Michigan. We own
and operate LNG production plants in Willis, Texas and Boron, Calif.
with combined capacity of 260,000 LNG gallons per day and that are
designed to expand to 340,000 LNG gallons per day as demand increases.
NorthStar, a wholly owned subsidiary, is the recognized leader in
LNG/LCNG (liquefied to compressed natural gas) fueling system
technologies and station construction and operations. BAF Technologies,
Inc., a wholly owned subsidiary, is a leading provider of natural gas
vehicle systems and conversions for taxis, vans, pick-up trucks and
shuttle buses. IMW Industries, Ltd., a wholly owned subsidiary based in
Canada, is a leading supplier of compressed natural gas equipment for
vehicle fueling and industrial applications with more than 1,200
installations in 24 countries. 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 bond offering closing date, the use of proceeds of
the bond offering and the production capacity and production results of
the Dallas Clean Energy McCommas Bluff, LLC gas processing plant. 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 disruption in the financial markets, delays in the
legal process for closing the bond offering, construction and permitting
delays related to the expansion of the gas processing facility, problems
affecting the generation and collection of landfill gas from the
landfill or other unanticipated disruptions or production problems
affecting the gas plant, such as severe weather, power outages or
mechanical failure. 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.
Clean Energy Fuels
News Media
Bruce Russell,
310-559-4955 x101
brussell@cleanenergyfuels.com
or
Investors
Ina
McGuinness, 805-427-1372
ina@mcguinnessir.com
Source: Clean Energy Fuels
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