Demand for Renewable Natural Gas Accelerates as Clean Energy Inks Deals for Over 20 Million Gallons in Past 45 Days
Clean Energy Fuels Corp. (NASDAQ: CLNE) announced new and extended contracts for more than 20 million gallons of Redeem renewable natural gas (RNG) to accommodate the continued demand across key business segments for the ultra-low carbon fuel produced from organic waste.
Alpha Lion, which carries mail for the U.S. Postal Service between the Northwest United States and Southern California, is adding 16 new natural gas trucks to its fleet through Clean Energy's Zero Now program and is expected to use over 700,000 gallons of Redeem annually. The program will provide significant fuel savings and have a positive effect on Alpha Lion's environmental impact in the region.
Zero Now is a program that brings the price of a heavy- or medium-duty natural gas truck at parity with a diesel truck, while offering a guaranteed fuel discount for the duration of the agreement. Alpha Lion will also participate in Clean Energy's Zero Now TouchPoint program, in partnership with the Natural Gas Vehicle Institute (NGVi), to provide Alpha Lion with first-class hands-on customer service pertaining to their purchase of new natural gas heavy-duty vehicles.
The City of Anaheim has signed a five-year service agreement for municipal vehicles that will consume an approximate 500,000 gallons of Redeem RNG.
"From waste to transit to trucking, fleets are discovering that RNG is a proven solution that can significantly decrease the impact of harmful emissions and reduce greenhouse gases," said Nate Jensen, Clean Energy's Senior Vice President, Renewables Fuels. "RNG offers price stability, lowers maintenance costs, and can reduce carbon emissions 70 percent or more, providing a clean and cost-effective alternative to diesel fuel."
News in Solid Waste
Clean Energy has been awarded a contract to build a fueling station that will accommodate both fast- and time-filling for the City of Sacramento, along with a long-term operations and maintenance (O&M) agreement, to fuel more than 100 natural gas refuse trucks with an anticipated 8 million gallons of RNG for the next 10 years.
Clean Energy has entered into a network fuel agreement with Athens Services in Los Angeles to support its growing CNG refuse fleet. Athens will utilize the Clean Energy network of public stations throughout Southern California and is expected to consume over 1 million gallons each year.
The City and County of Sacramento have extended their RNG supply agreement with Clean Energy. Clean Energy provides RNG to three different LNG stations in the region, for a total annual consumption expected to exceed 1.2 million gallons.
The County of Denver has signed a three-year service agreement for its CNG station, which provides fuel to over 30 CNG refuse trucks for an expected 750,00 gallons.
Clean Energy signed a two-year contract with LA County Sanitation to dispense LA County's locally generated RNG at its public station in Carson which uses an estimated 720,000 gallons of RNG.
Tidewater Fibre in Virginia has extended its service contract renewal for 50 refuse trucks using an approximate 500,000 gallons per year.
Suffolk County in New York has inked a long-term service agreement for 15 utility trucks for an anticipated 120,000 gallons of CNG.
The City of Lexington, KY has signed a contract for a 15-truck time-fill and defueling hose upgrade and services, for an estimated 150,000 additional gallons per year.
The City of Philadelphia extended its fuel agreement for refuse trucks to continue fueling at Clean Energy's Philadelphia Airport station while its private 40-truck station (being built by Clean Energy) is completed at the end of the year. The contract is for 16 refuse trucks for an estimated 100,000 gallons.
Noble Environmental in Pennsylvania has purchased a CNG mobile unit, along with monthly services, to fuel its CNG refuse trucks until Clean Energy completes construction of a permanent station.
Republic Services Expands Station Capacity and Footprint
Clean Energy is completing the construction of a Republic Services combination time-fill/fast-fill station in Sacramento, CA that will fuel 80 solid waste trucks to support growing operations in the Sacramento region. The station will fuel an expected 1.1 million gallons of Redeem through 2023.
In Las Vegas, Clean Energy is expanding Republic Services' largest natural gas truck yard in the country, adding 92 time-fill fueling spots. The station will provide approximately 3.2 million gallons of Redeem per year, which will increase by 837,000 gallons when at full capacity.
Clean Energy has increased station capacity at Republic Service stations in San Diego and in Chula Vista, CA, resulting in additional volume of an estimated 400,000 gallons of Redeem per year.
Clean Energy has signed an agreement to build a station for Republic Services in Freemont, CA to accommodate 66 new trucks in the coming years that will result in an approximate increase of 600,000 gallons.
Movement in Transit
Clean Energy has signed a new agreement to operate and maintain the City of Phoenix transit bus facilities, which dispense an estimated 4.8 million gallons of natural gas per year.
Clean Energy was awarded a station upgrade contract to install new equipment for the West County Transportation Authority (WCTA), Santa Rosa, California, along with a long-term service agreement, during which the fleet of 39 school buses are expected to fuel with 800,000 gallons of Redeem.
Access Services has deployed 20 newly certified CNG Dodge Promasters in partnership with its contractors for paratransit service in Southern California. Clean Energy signed a fueling agreement with Southland Transit, an Access Services contractor, for an expected 800,000 gallons of Redeem.
Clean Energy has signed an RNG contract with the California Department of General Services for the benefit of Solano County Transit (SolTrans), California for its fleet of 19 buses for an anticipated 600,000 gallons of Redeem.
The City of Gardena, California has inked a network fueling contract for 18 CNG transit buses at the Clean Energy station at Los Angeles International Airport (LAX). This first round of CNG buses will fuel with an expected 150,000 gallons of RNG annually.
The City of Lodi, California has signed a multi-year contract for an estimated 246,000 gallons of Redeem to power 37 buses and city fleet vehicles.
After obtaining grant funding to migrate its buses to clean RNG, Anaheim Union High School in California has signed a contract with Clean Energy for an estimated 135,000 gallons of Redeem to fuel 15 new school buses.
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