Clean Energy and bp Create JV to Invest in RNG Fuel Production
Demand for RNG Continues to Rapidly Increase
NEWPORT BEACH, Calif. – March 10, 2021 – Clean Energy Fuels Corp (NASDAQ: CLNE) today announced that it has finalized a joint venture (JV) with BP Products North America Inc, a subsidiary of BP p.l.c. (NYSE: BP) to develop, own and operate new renewable natural gas (RNG) projects at dairies and other agriculture facilities.
Each company will retain 50% voting control in the JV, which will be initially funded with $50 million previously provided by bp and another $30 million from Clean Energy. The JV anticipates adding preferred stock and debt to increase committed investment capital. Clean Energy will be the operating partner.
The JV will produce RNG using methane captured from dairies’ waste. RNG is used as a transportation fuel and has lower GHG emissions on a lifecycle basis when compared to conventional gasoline and diesel. The California Air Resources Board (CARB) has given similar projects a carbon intensity (CI) score of a weighted average of -317 compared to CI scores of 100 for conventional diesel fuel and 16 for electric batteries.
The demand for RNG has significantly accelerated over the last few years with some of the largest heavy-duty fleets in the world such as UPS, Republic Services, New York Metropolitan Transportation Authority and LA Metro, successfully operating tens of thousands of vehicles on RNG.
Andrew J. Littlefair, CEO and president of Clean Energy: “The fact that we were able to work out the details of this JV so quickly after announcing our intent in December is a testament to the commitment of both companies to get more RNG into the marketplace. Clean Energy continues to sign new RNG agreements with trucking companies, transit agencies and other transportation fleets all looking to reduce the carbon footprint of their operations. This JV will provide additional RNG going forward and enable us to expand that customer base.”
Sean Reavis, senior vice president, bp low carbon trading: “The expansion of our RNG portfolio aligns with bp’s ambition to become a net zero company by 2050 or sooner and to help the world get to net zero. We look forward to continuing our work with Clean Energy on exciting projects aimed at reducing the carbon intensity of our products and helping customers lower their carbon footprint.”
Clean Energy is the largest provider of RNG as a transportation fuel in the United States and Canada, the largest RNG fuel provider under the California LCFS program, and currently has a joint RNG marketing agreement with bp established in 2018.
About Clean Energy
Clean Energy Fuels Corp. is the leading provider of the cleanest fuel for the transportation market in the United States. Through its sales of RNG, which is derived from capturing biogenic methane produced from decomposing organic waste, Clean Energy allows thousands of vehicle fleets, from airport shuttles to city buses to waste and heavy-duty trucks, to reduce their amount of climate-harming greenhouse gas from 60% to over 400% according to the California Air Resources Board, depending on the source of the RNG. Clean Energy can deliver RNG through compressed natural gas (CNG) and liquified natural gas (LNG) to its network of approximately 540 fueling stations across the U.S. and Canada. Clean Energy builds and operates CNG and LNG fueling stations for the transportation market, owns liquefication facilities in California and Texas, and transports bulk CNG and LNG to non-transportation customers around the U.S. For more information, visit www.CleanEnergyFuels.com.
About bp
bp’s purpose is to reimagine energy for people and our planet. It has set out an ambition to be a net zero company by 2050, or sooner, and help the world get to net zero, and recently announced its strategy for delivering on that ambition. For more information visit bp.com.
Clean Energy Contact:
Raleigh Gerber
949-437-1397
raleigh.gerber@cleanenergyfuels.com
Investor Contact:
investors@cleanenergyfuels.com
Forward-Looking Statements
This press 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, such as statements regarding, among other things: the amount of capital that may be invested in RNG projects by the JV; Clean Energy’s plans for its RNG business; increased market adoption of carbon-negative RNG as a vehicle fuel; growth in Clean Energy’s customer base for its RNG vehicle fuel; the strength of Clean Energy’s vehicle fueling infrastructure and its ability to leverage this infrastructure to increase sales of RNG vehicle fuel and to deliver 100% RNG to its entire fueling infrastructure by 2025; the benefits of RNG as an alternative vehicle fuel, including economic and environmental benefits; and growth in and certainty of supply of RNG. Actual results and the timing of events could differ materially from those expressed in or implied by these forward-looking statements as a result of a variety of factors, including, among others: Clean Energy’s and Total’s ability to invest in RNG projects through the JV; supply, demand, use and prices of crude oil, gasoline, diesel, natural gas and alternative fuels, as well as heavy-duty trucks and other vehicles powered by these fuels; the willingness of fleets and other consumers to adopt RNG as a vehicle fuel; and general economic, political, regulatory, market and other conditions. The forward-looking statements made in this press release speak only as of the date of this press release and Clean Energy undertakes no obligation to update publicly such forward-looking statements to reflect subsequent events or circumstances, except as otherwise required by law. Additionally, the reports and other documents Clean Energy files with the SEC (available at www.sec.gov) contain additional information on these and other risk factors that may cause actual results to differ materially from the forward-looking statements contained in this press release.
