With 50.6 million gallons delivered in one quarter for the first time, the company plans to further boost natural gas sales with a strategic move to reach large industrial energy users beyond the nation’s pipeline by acquiring a controlling interest in NG Advantage LLC, a pioneer in “virtual pipeline” delivery system. “Our record growth in overall delivered gallons combined with the new market reach of NG Advantage positions us to keep growing as our trucking business develops,” said Andrew J. Littlefair, president and CEO of Clean Energy.
The NG Advantage investment will primarily be used to fund capital expenditures for expansion and growth in the business. Clean Energy will also purchase NG Advantage’s Milton, Vermont, compression station which is on track to supply nearly 16 million gasoline-gallon-equivalents (GGEs) of CNG annually. This station will immediately become Clean Energy’s highest-volume station in its nationwide network of almost 500 stations.
“Rising and unpredictable fuel costs have made it exceptionally difficult for manufacturers and facilities without access to the nation’s natural gas pipeline network to compete in an increasingly competitive marketplace,” said Tom Evslin, NG Advantage’s founder and president, who will remain with the company as CEO and second largest investor, and will continue to oversee operations from its Milton offices.
As a result of this partnership, Clean Energy expects a significant increase in delivered CNG volume day one and forecasts rapid growth as NG Advantage expands with Clean Energy’s existing station network and new stations built with compressors from its IMW subsidiary.
Source: Clean Energy Fuels