Clean Energy Initiates Natural Gas Fueling Services with Refuse Operators in Texas, New York and California
National Deployment of CNG Refuse Vehicles Continues to Expand
SEAL BEACH, Calif.--(BUSINESS WIRE)--
Clean Energy Fuels Corp. (Nasdaq:CLNE), North America's leader in clean transportation, has completed agreements to begin compressed natural gas (CNG) fueling services with four refuse operators across the country.
"These contracts indicate the wide scope of interest in natural gas vehicles for this industry nationwide as natural gas is proven cleaner to operate and cheaper to use," said Andrew J. Littlefair, Clean Energy President and CEO. "In all cases, these are only initial deployments of natural gas vehicles in fleets that are expected to grow in size as older diesel trucks are replaced.
"Less than 18 months ago, only California had refuse operators using natural gas fuel. Today, industry acceptance of natural gas fueled trucks is becoming enthusiastic and widespread," Littlefair noted.
In Texas, Clean Energy has been awarded the contract by the City of San Antonio to design, build and operate the city's first compressed natural gas (CNG) refueling station, which will initially fuel 15 refuse trucks and is expected to expand to fuel 30 refuse trucks by next year. This move will make the city's CNG refuse fleet the largest in Texas. The city has an option to purchase 60 more CNG refuse trucks in FY 2009 and could potentially construct two more CNG refueling stations at two additional city maintenance facilities. San Antonio utilized federal and state funding opportunities to assist with the station and vehicle cost. The city was able to take advantage of the federal alternative vehicle credits by instructing refuse truck dealers to pass along the tax credit savings to the city in their truck price bids. In addition, the city utilized state grant funding from the Texas Commission on Environmental Quality (TCEQ) to assist with the station cost.
In New York, two Brooklyn-based paper collection and recycling companies, Metropolitan Paper and Filco Carting, have become the first commercial carters to purchase CNG trucks in New York City. Each company purchased three CNG trucks. In 2007, Clean Energy was awarded grant funding from the New York State Energy Research and Development Authority (NYSERDA) to assist Metropolitan Paper's purchase of 12 CNG trucks over the next 18 months and build a state-of-the-art CNG fueling facility on its property. Clean Energy Finance, a subsidiary of Clean Energy, will provide financing for the six trucks.
In California, CalMet Services Inc. (CalMet), a waste collection services provider in Southern California, has partnered with Clean Energy to deploy 25 CNG refuse trucks over two years. Clean Energy's state-of-the-art station will initially dispense an estimated 250,000 gallons of natural gas annually and will be designed to accommodate future growth. CalMet is following through on its mission "to provide high quality, competitively priced rubbish collection, recycling, and disposal services that are environmentally responsible and in a manner which is safe for our customers and employees."
Also in California, Ware Disposal, Inc. is initiating its use of natural gas vehicles by deploying its first two CNG trucks now and taking delivery of nine more CNG trucks in March 2008. All of the trucks will refuel within the Clean Energy public access fueling station network. Clean Energy also is financing the trucks for Ware Disposal through Clean Energy Finance.
About Clean Energy
Clean Energy, based in Seal Beach, Calif., is the leading provider of natural gas (CNG and LNG) for transportation in North America. It has a broad customer base in the refuse, transit, ports, shuttle, taxi, intrastate and interstate trucking, airport and municipal fleet markets, fueling more than 14,000 vehicles daily at over 175 strategic locations across the United States and Canada. Information at: 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. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements, including the anticipated adoption rate of CNG vehicles by the varied operators. 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.
Source: Clean Energy Fuels Corp.
Released January 17, 2008