Clean Energy Contracts with Florida-Based Saddle Creek Transportation, Inc. To Build, Operate & Maintain Major CNG Truck Fueling Station
Station Will Support Third-Party Logistics Provider’s New CNG Truck Fleet —
Seal Beach, Calif. (Oct. 3, 2011) — Clean Energy Fuels Corp. (Nasdaq: CLNE) has signed a 10-year contract with third-party logistics provider Saddle Creek Transportation, Inc. (Saddle Creek) to build, operate and maintain a new compressed natural gas (CNG) truck fueling station at Saddle Creek’s headquarters and warehouse complex in Lakeland, Florida. The combined fast-fill and time-fill fueling facility will support Saddle Creek’s expanding fleet of CNG trucks.
Development of the new Saddle Creek CNG station is already underway, with the opening projected for December 2011. Saddle Creek expects to deploy 40 new Freightliner CNG trucks by year-end to serve its Florida customers. An additional 40 for-hire CNG trucks are scheduled to roll out early in 2012 and the fleet is anticipated to grow to 120 trucks in the future. It is projected that the first 80 trucks will use approximately 1.5 million gallons of fuel per year.
Saddle Creek is a nationwide third-party supply chain logistics (3PL) company integrating warehousing, for-hire transportation, contract packaging and fulfillment services.
James Harger, Clean Energy’s Chief Marketing Officer, said, “Investing in natural gas vehicles for its for-hire fleet as part of the company’s commitment to sustainability makes Saddle Creek a leader in the rapidly-growing movement to transition trucking to natural gas to add fuel diversity, curtail harmful emissions and reduce dependence on imported oil. They will have the largest over-the-road CNG fleet in Florida.”
Currently priced $1.50—$2.00 per gallon lower than diesel or gasoline (depending upon local markets), the use of natural gas fuel reduces costs significantly for vehicle and fleet owners, reduces greenhouse gas emissions up to 30% in light-duty vehicles and 23% in medium to heavy-duty vehicles. Additionally, natural gas is a secure North American energy source with 98% of the natural gas consumed produced in the U.S. and Canada.
Clean Energy (Nasdaq: CLNE) is the largest provider of natural gas fuel for transportation in North America and a global leader in the expanding natural gas vehicle market. It has operations in CNG and LNG vehicle fueling, construction and operation of CNG and LNG fueling stations, biomethane production, vehicle conversion and compressor technology.
Clean Energy fuels over 23,300 vehicles at 248 strategic locations across the United States and Canada with a broad customer base in the refuse, transit, trucking, shuttle, taxi, airport and municipal fleet markets. Clean Energy del Peru, a joint venture, fuels vehicles and provides CNG to commercial customers in Peru. We own (70%) and operate a landfill gas facility in Dallas, Texas, that produces renewable natural gas, or biomethane, for delivery in the nation’s gas pipeline network, and we plan to build a second facility in Michigan. We own and operate LNG production plants in Willis, Texas and Boron, Calif. with combined capacity of 260,000 LNG gallons per day and that are designed to expand to 340,000 LNG gallons per day as demand increases. NorthStar, a wholly owned subsidiary, is the recognized leader in LNG/LCNG (liquefied to compressed natural gas) fueling system technologies and station construction and operations. BAF Technologies, Inc., a wholly owned subsidiary, is a leading provider of natural gas vehicle systems and conversions for taxis, vans, pick-up trucks and shuttle buses. IMW Industries, Ltd., a wholly owned subsidiary based in Canada, is a leading supplier of compressed natural gas equipment for vehicle fueling and industrial applications with more than 1,200 installations in 24 countries. For more information, visit www.cleanenergyfuels.com
Forward-Looking Statements — 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 statements about the procurement and deployment of CNG vehicles, the volume of CNG that will be consumed at the station, the potential impact of replacing diesel and gasoline with CNG, and the timing for completion of the station. 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 the performance, availability and price of CNG trucks relative to gasoline and diesel trucks, the price per gallon of CNG relative to diesel and gasoline, and permitting or other delays encountered during construction of the station. 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.
