Clean Energy Fuels Corp. and its largest shareholder, Total SE, announced 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. The initial firm commitment is $100 million and can increase to $400 million as development opportunities progress.
Since Clean Energy and Total will be providing the equity portion of the investments, the actual amount of capital invested in biomethane projects may be higher than $400 million depending on the amount of leverage that is deployed. In addition, Total will be providing credit support for Clean Energy development in the value chain, including $45 million for contracted fueling infrastructure.
The companies have already partnered to expand the use of biomethane in the heavy-duty vehicle market with the Zero Now program, which allows fleets to purchase natural gas trucks for the same price as diesel trucks. The demand for carbon-negative fuel has rapidly accelerated through this 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 the cleanest fuel.
“The finalization of this JV with Total, which was originally announced in December of last year, demonstrates the commitment both companies have to the growth of renewable natural gas, a fuel that can tackle serious climate issues today,” said Andrew J. Littlefair, CEO and president of Clean Energy. “The demand by customers continues to accelerate, highlighted by our recent announcement that the largest bus fleet in the U.S., LA Metro, had converted their entire fleet to renewable natural gas. This JV will help Clean Energy to continue to increase its supply in the years ahead.”
Source: Clean Energy