Clean Energy Fuels Corp. and its largest shareholder, Total S.E., announced a memorandum of understanding to create a 50/50 joint venture to develop carbon-negative renewable natural gas production facilities in the United States, as well as credit support to build additional downstream fueling infrastructure. Total will provide $50 million and Clean Energy $30 million for the proposed joint venture and Total will be providing credit support of $65 million to support Clean Energy development in the biomethane value chain, including $45 million for contracted fueling infrastructure.
The companies have already partnered to expand the use of renewable natural gas in the heavy-duty truck market with its Zero Now program, which allows fleets to purchase natural gas trucks for the same price as diesel trucks. The demand for biomethane has rapidly accelerated through the Zero Now program with trucking companies such as Kenan Advantage, KeHE Distributors, Estes Express Lines, Tradelink Transport, among many others, taking advantage of the economic savings while powering their new fleets with this clean fuel.
The California Air Resources Board gives these carbon-negative renewable natural gas projects a carbon intensity (CI) Score (gCO2e/MJ) of -250 (or lower) compared to 97 for diesel and 46 for electric batteries.
“We are very fortunate to have a partner in Total that is so supportive on a number of levels,” said Andrew J. Littlefair, CEO and president of Clean Energy. “Both our companies have recognized the enormous opportunity that a carbon-negative fuel can play in our ambitious efforts to combat climate change. This new agreement will allow Clean Energy to increase the flow of low-CI renewable natural gas as the demand expands, as well as the capital to build new fueling stations for additional contracted fleets.”
Clean Energy also announced plans that it will work with BP Products North America Inc, a subsidiary of BP p.l.c. to develop, own and operate new renewable natural gas facilities at dairies and other agriculture facilities that will produce one of the cleanest fuels in the world.
Clean Energy’s goal is to meet the rapidly growing demand by customers for carbon-negative renewable natural gas and to deliver its Redeem™ fuel to its entire fueling infrastructure by 2025, which it is well on its way to achieving.
Source: Clean Energy