Clean Energy begins producing renewable natural gas at latest project
Digester at Drumgoon Dairy in South Dakota Completed in December and Began Injecting Ultra-Low Carbon RNG into Pipeline Soon After
Newport Beach, Calif. – January 11, 2024 – Clean Energy Fuels Corp. (Nasdaq: CLNE) announced that it has completed a new renewable natural gas (RNG) production facility at Drumgoon Dairy in Lake Norden, S.D. The 6,500-cow dairy farm is expected to supply 1.66 million gallons of negative carbon-intensity RNG annually to the transportation market when at full capacity.
Construction of the $38 million RNG digester project was completed in early-December 2023 and injection into the interstate natural gas pipeline system of the RNG began within weeks. The RNG produced at Drumgoon will be virtually stored until all pathways for federal and state environmental credits are approved, and a carbon-intensity score is assigned to the RNG, expected in the first half of 2024.
“Completion of the RNG project at Drumgoon Dairy, along with several others that are right behind it, is already making a contribution to controlling harmful greenhouse gas emissions,” said Clay Corbus, senior vice president of renewables at Clean Energy. “Being a multi-generational operation, Drumgoon’s owners are always thinking about the future, whether it’s bringing in the latest technology to better track and monitor their cows, or transforming their herd to antibiotic-free. Adding a RNG digester that captures the methane produced by Drumgoon’s cows and turning it into a clean fuel is the ultimate recycling project.”
The Drumgoon Dairy RNG project was financed through Clean Energy’s joint venture with bp, developed with Dynamic Renewables, and is one of several RNG projects the three companies have partnered to build at dairies in the Midwest. All the RNG produced at Drumgoon will be available at Clean Energy’s fueling infrastructure. Clean Energy sales of RNG into the transportation market for the first nine months of 2023 grew 17% over the same period of 2022, and with customers such as UPS, Republic Services, LA Metro, Knight Swift, Amazon and others, the demand of the ultra-clean fuel is expected to continue to expand.
Agriculture accounts for nearly 10 percent of U.S. greenhouse gas (GHG) emissions and the transportation sector accounts for another 28%, according to the U.S. Environmental Protection Agency. Capturing methane from farm waste lowers these emissions. RNG, produced by that captured methane and used as a transportation fuel, significantly lowers GHG emissions on a lifecycle basis when compared to diesel. This allows RNG to be one of the only fuels to receive a negative carbon-intensity score based on the reduction of emissions at the source and at the vehicle.
About Clean Energy
Clean Energy Fuels Corp. is the country’s largest provider of the cleanest fuel for the transportation market. Our mission is to decarbonize transportation through the development and delivery of renewable natural gas (RNG), a sustainable fuel derived from organic waste. Clean Energy allows thousands of vehicles, from airport shuttles to city buses to waste and heavy-duty trucks, to reduce their amount of climate-harming greenhouse gas. We operate a vast network of fueling stations across the U.S. and Canada. Visit www.cleanenergyfuels.com and follow @ce_renewables on X.
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 without limitation statements about amounts and timing of natural gas expected to be produced or consumed; numbers and timing of vehicles expected to be deployed, fueled, maintained, or financed; characteristics and performance of natural gas engines and trucks; the environmental and other benefits of Clean Energy’s fuels; the timing and scope of construction, maintenance, and other projects; and the impacts of legislative and regulatory developments. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements. The forward-looking statements made herein speak only as of the date of this press release and, unless otherwise required by law, Clean Energy undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Additionally, the reports and other documents Clean Energy files with the SEC (available at www.sec.gov) contain risk factors, which may cause actual results to differ materially from the forward-looking statements contained in this news release.
Media Contact:
Kimberly Fleer
1-949-447-0556
Kimberly.Fleer@cleanenergyfuels.com
Investor Contact:
Thomas Driscoll
1-949-437-1191
Thomas.Driscoll@cleanenergyfuels.com
