PHL Airport Shuttle Fleet Goes Green with Clean Energy CNG; Valley Vista Services Signs Redeem™ RNG Deal; Grant Funding for SoCal Port Trucks

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- Clean Energy Fuels Corp. (Nasdaq: CLNE) announced that Philadelphia International Airport (PHL) has switched from diesel to Clean Energy’s compressed natural gas (CNG) as part of a sustainability initiative to reduce toxic emissions, decrease noise volume, and lower fuel costs.

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First Transit shuttle bus refuels with natural gas at Clean Energy station at PHL Airport. (Photo: Business Wire)

First Transit, the largest private-sector provider of mobility solutions in North America and provider of shuttle bus services at PHL, signed a 7-year contract with Clean Energy for an expected volume of 2.5 million GGEs to power its 38 natural gas transit buses. The shuttle fleet accommodates three main routes at PHL—employee, cargo, and long-term economy parking—that traverse a total 3.5 million trips per year.

“Airport transit vehicles operate in confined areas, primarily parking lots, so carbon emissions and noise pollution have a greater impact on the passenger experience,” said Raymond Blethen, Northeast director of operations, First Transit. “The airport was seeking to adopt alternative fuels and environmentally-friendly vehicles, so it converted 100 percent of its fleet to natural gas. The CNG-fueled shuttle buses run 90 percent quieter than diesel, lower CO2 emissions by 20 percent, and have no fumes.”

“With CNG our fuel costs are more stable than diesel, the maintenance is a lot cleaner, and it improves the reliability of vehicles in the winter,” said Blethen. “From a safety standpoint there is no spillage, so unlike diesel we never have to shut down.”

Waste Vehicles to Run on Redeem™

Clean Energy executed a supply agreement with Valley Vista Services to power 100 waste vehicles with its Redeem brand renewable natural gas (RNG) for an anticipated total of 1.3 million GGEs of Redeem annually.

Redeem is the first commercially available RNG vehicle fuel. It is derived from capturing biogenic methane that is naturally generated by the decomposition of organic landfill and agricultural waste. Redeem enables at least 70 percent reduction in carbon emissions when displacing diesel or gasoline, according to California Air Resources Board (CARB) estimates.

Valley Vista Services will offer Redeem at two facilities, a private/public CNG station at its headquarters located in City of Industry, Calif. that will dispense an anticipated 1 million GGEs of Redeem annually. Valley Vista also built a state-of-the-art transfer station earlier this year in Pomona, Calif. that has a new public access fast fill CNG station and will dispense an anticipated 300,000 GGEs of Redeem annually. Both contracts are for three years.

Clean Energy commissioned a newly constructed private liquified natural gas (LNG) fueling station for Burrtec Waste Industries. The station build project, located at Burrtec’s San Bernardino facility, was completed by Clean Energy within 10 months and will fuel upwards of 50 LNG refuse trucks. Prior to the commissioning of the site, Burrtec signed a three-year repair and maintenance (R&M) agreement with Clean Energy. The station is expected to consume 600,000 LNG gallons annually.

Other refuse contracts include the City of Ontario, which signed a one-year R&M and RNG renewal and extended its option for an expected 600,000 GGEs annually. The City of Sacramento opted for a one-year R&M renewal and extended its option for an expected 450,000 GGEs annually.

Growing Demand for Near-Zero Trucks

South Coast Air Quality Management District (SCAQMD) staff is recommending a total of 148 port trucks receive incentive funding under the Year 20 Carl Moyer Program. The Carl Moyer Program focuses on improving air quality by replacing older heavy-duty diesel trucks with cleaner fuel technologies, including near-zero engines powered by Clean Energy’s Redeem. The Year 20 Carl Moyer grant program is oversubscribed and SCAQMD has a backup funding list of additional projects awaiting funding.

The SCAQMD Board will consider approval of staff recommendations at an upcoming board meeting.

SQAQMD staff is also recommending that 10 port trucks receive funding under the Environmental Protection Agency’s (EPA) 2017 Diesel Emissions Reduction Act (DERA) program, which provides support for projects that protect human health and improve air quality by reducing harmful emissions from diesel engines.

“It’s encouraging to see a strong demand for near-zero trucks in the Ports of Los Angeles and Long Beach,” said Greg Roche, vice president, Clean Energy. “These grant programs will go a long way to reduce air pollution in this busy transportation corridor by deploying the cleanest truck technology that can be easily and economically adopted today.”

Mountain Valley Express, the less than truckload (LTL) and general freight company with locations in California, Nevada and Arizona is expanding its LNG fleet as part of an initiative to reduce emissions. With support from Prop 1B grants, the freight company is adding eight Freightliner M2 tractors equipped with the Near-Zero ISL-G engines, which will consume an expected 60,000 GGEs annually at Clean Energy public stations in Northern California, including West Sacramento, Lathrop and Tulare.

About Clean Energy

Clean Energy Fuels Corp. is the leading provider of natural gas fuel and renewable natural gas (RNG) fuel for transportation in the United States and Canada, with a network of approximately 530 stations across North America that we own or operate. We build and operate compressed natural gas (CNG) and liquefied natural gas stations (LNG) stations and deliver more CNG, LNG and RNG vehicle fuel than any other company in the United States. Clean Energy sells Redeem™ RNG fuel and believes it is the cleanest transportation fuel commercially available, reducing greenhouse gas emissions by at least 70%. Clean Energy owns natural gas liquification facilities in California and Texas which produces LNG for the transportation and other markets. For more information, 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 without limitation statements about amounts of natural gas fuel expected to be consumed and the benefits of natural gas relative to gasoline and diesel. 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, without limitation, the price of natural gas relative to gasoline and diesel, and the cost and operating experience associated with natural gas vehicles. The forward-looking statements made herein speak only as of the date of this press release and, unless otherwise required by law, the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Additionally, the reports and other documents the Company files with the SEC (available at www.sec.gov) contain risk factors, which may cause actual results to differ materially from the forward-looking statements contained in this news release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20181025005141/en/

Clean Energy Contact:
Raleigh Gerber, 949-437-1397
raleigh.gerber@cleanenergyfuels.com
or
Investor Contact:
investors@cleanenergyfuels.com

Source: Clean Energy Fuels Corp.

Released October 25, 2018