NEWPORT BEACH, Calif.--(BUSINESS WIRE)--May 5, 2020--
Clean Energy Fuels Corp. (NASDAQ: CLNE) announced new fuel agreements for its Redeem™ renewable natural gas (RNG), along with multiple station expansions to accommodate the continued demand for the ultra-low carbon fuel produced from organic waste, across key sectors of the transportation industry.
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Clean Energy continues to expand the use of clean, ultra-low carbon fuel for fleets. (Photo: Business Wire)
“Despite this unprecedented challenging time that the country is experiencing with COVID-19, Clean Energy continues to expand the use of a clean, ultra-low carbon fuel to fleets,” said Chad Lindholm, vice president, Clean Energy. “Many of our customers including heavy-duty trucking, refuse, and transit agencies are performing heroic duty by continuing to operate under extreme difficult circumstances. We applaud them and will support them any way we can.”
Clean Energy has completed a time-fill station upgrade for the City of Chesapeake, VA which recently obtained 12 new natural gas refuse trucks increasing its fleet to 60. The contract calls for an approximate 2.5 million gallons over five years and includes operations and maintenance.
Clean Energy completed construction of its fourth station for USA Hauling at their Waterbury, CT yard. The 30-truck private time-fill station will dispense an estimated 1.8 million gallons over the five-year contract which also includes operations and maintenance.
In 2006 Clean Energy entered into a ten-year contract with the City of Long Beach to design, build, operate and maintain a natural gas station to fuel public and City vehicles. In the first year of operation the site dispensed 180,000 gallons. By 2017 station sales had reached over 700,000 gallons and the City looked to increase capacity with an updated and more robust station.
The new station will provide three dispensers and two 400hp compressors. These compressors will allow drivers to fuel nearly three times faster than the current station. The new station will be constructed while the existing station remains in operation, which will minimize downtime and ensure continuous and reliable fueling for existing fleet customers.
Clean Energy has completed construction of its fifth station with South Jersey Gas at the Cape May County Municipal Utilities Authority Transfer Station. The public access fast-fill facility will initially fuel approximately 100,000 gallons per year for utility vehicles, transfer trucks and Jitney shuttle buses with volume anticipated to increase annually as additional CNG vehicles are procured.
Strong Start in Solid Waste
Clean Energy has signed a contract with Republic Services in Las Vegas to upgrade station equipment and add 92 fueling spots which in total will provide an approximate 3.7 million gallons of RNG per year.
In Chula Vista, Clean Energy signed an agreement with Republic Services for a station upgrade that will add 35 fueling spots and total an estimated 612,000 gallons per year.
Recology King County, a Seattle-based waste management company, has signed a 10-year operations and maintenance agreement for its station, which will fuel an anticipated 10 million gallons over the life of the contract. The station, originally constructed by Clean Energy in 2011, supports approximately 100 refuse trucks.
The County of Sacramento renewed its agreement with Clean Energy to provide maintenance services at the County’s CNG and LNG station. The CNG station supports the fueling needs at the County’s airport while the LNG station is heavily utilized by the County’s refuse trucks. Combined, these stations should dispense over 750,000 gallons annually.
Refuse company Tidewater Fibre Corporation in Chesapeake, VA extended its service contract at a CNG station fueling around 40 of its CNG refuse trucks with an approximate 440,000 gallons annually.
FCC Environmental Services has signed a multi-year CNG station maintenance agreement with Clean Energy for their Volusia County, FL operations. FCC will be serving the county with 35 CNG waste and recycling trucks anticipated to use over 300,000 gallons annually.
Significant Contract Highlights
In Clean Energy’s first RNG supply agreement with a California School District, Garden Grove Unified School District signed a 5-year RNG supply for approximate 575,000 gallons to fuel 67 vehicles.
Clean Energy received an extension with the Atlantic County Utilities Authority in New Jersey for operations, maintenance, retail, billing and marketing services for 40 trucks for an estimated 560,000 gallons per year.
K&I Services, Inc. in Bakersfield, CA has signed an agreement to purchase seven new trucks through Clean Energy’s Zero Now, a program that brings the cost of a natural gas truck at parity with a diesel truck while offering a guaranteed fuel discount. Clean Energy will supply K&I with an estimated 540,000 gallons of Redeem over the 5-year contract for waste transfer trucks that will service the LA County Department of Sanitation and fuel at the Clean Energy station in Whittier.
Sacramento-based trucking company Matheson Postal Services signed an extension to its fueling agreement with Clean Energy for 80 CNG tractors operating in service to the US Postal Service. Matheson is a top-tier transportation provider to the US Postal Service.
Clean Energy expanded fueling services into the medium-duty box truck space with Packair Freight, which provides deliveries to movie sets. Packair recently purchased its first CNG medium-duty box truck for service at LAX and is looking to acquire additional units.
All 550 Clean Energy stations have remained fully operational during the COVID-19 crisis and continue to provide access to customers that are supplying essential services. With the largest technician base in North America, Clean Energy is committed to serving fleet operators while protecting the health and safety of both its employees and customers.
About Clean Energy
Clean Energy Fuels Corp. is North America’s leading provider of the cleanest fuel for the transportation market. Through its sales of Redeem™ renewable natural gas (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 by at least 70% and even up to 300% depending on the source of the RNG. Clean Energy can deliver Redeem 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 natural gas 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.
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 the numbers of natural gas vehicles expected to be deployed; amounts of RNG and natural gas fuel expected to be consumed; and the benefits of natural gas vehicles, RNG and natural gas. 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.
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Source: Clean Energy Fuels Corp.