Clean Energy Fuels Corp. (NASDAQ: CLNE) today announced it delivered 143 million gallons of Redeem™ Renewable Natural Gas (RNG) last year as robust sales of the carbon-neutral transportation fuel continued in 2019, closing out the year with significant deals throughout North America.
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The environmental impact of replacing 143 million gallons of diesel fuel with Clean Energy's Redeem™ renewable natural gas. (Graphic: Business Wire)
The environmental impact of replacing 143 million gallons of diesel fuel with RNG is the equivalent of reducing 745,000 metric tons of greenhouse gas emissions—also equal to planting 12 million trees, or removing 158,000 cars off the road, or reducing 260,000 tons of waste that would otherwise be sent to the landfill.
Redeem was the first commercially available RNG vehicle fuel, derived from capturing biogenic methane that is produced from the decomposition of organic waste from dairies, landfills, and wastewater treatment plants.
In 2019, Clean Energy unveiled ambitious goals to exclusively offer zero-carbon1 Redeem at all of its fueling stations by 2025. At this pace Clean Energy would outdistance other alternative fuels, including electric vehicles, which are not expected to hit that mark until 2045.
Clean Energy’s 2019 Redeem totals were bolstered by a seven-year contract with UPS for 170 million gallons to fuel their large fleet of natural gas heavy-duty trucks around the country, the largest purchase of RNG ever in the U.S. In 2019 Clean Energy provided an estimated 16 million gallons of Redeem to UPS. Redeem sales were also strengthened by the addition of more ultra-low emissions trucks operating in the ports of Los Angeles; and from wider adoption by municipalities including Santa Monica, Santa Clarita, Midway City, Redondo Beach, Sacramento, Ontario and San Jose.
"Fleets are discovering that RNG, together with natural gas engine technology, is a proven solution that can significantly decrease the impact of harmful emissions and reduce greenhouse gas emissions," said Chad Lindholm, vice president, Clean Energy Fuels. "Clean Energy’s corporate vision is directly tied to improving air quality and positively impacting public health, so we’ll continue to grow Redeem’s role in our fuel offerings to provide a clean and cost-effective alternative to diesel fuel."
Redeem RNG Keeps Flowing
Ecology Auto Parts, based in Southern California, has signed a five-year fuel contract for an estimated 3.5 million gallons of Redeem to fuel 47 new class 8 trucks that will fuel within Clean Energy’s public network in Southern California. The trucks were purchased through Clean Energy’s Zero Now program which brings the price of a natural gas truck at parity with a diesel truck while offering a guaranteed fuel discount for the duration of the agreement.
The Orange County Department of Public Works signed a five-year renewal agreement for an anticipated 750,000 gallons of Redeem at its public access station in Orange, CA, to fuel 50 municipal vehicles such as sweepers and dump trucks, with the remaining volume dedicated to public and third party usage. The contract also includes continued operation and maintenance for the length of the agreement.
LAZ Parking, which operates more than 40 CNG buses across Southern California, has signed an agreement for an expected 800,000 gallons of Redeem.
Amato industries has renewed a commitment for an estimated 360,000 gallons of Redeem over the three-year contract to provide RNG for the shuttle company’s 17 hotel and charter service shuttle buses.
IRS Demo, a demolition company based in Los Angeles, has inked a three-year agreement for approximately 225,000 gallons of Redeem. The company has added three new CNG trucks to its 8-truck fleet, which will fuel at Clean Energy’s station in Commerce, CA.
Fox Rent A Car has renewed a fuel contract for approximately 210,000 gallons of Redeem over three years to power its 17 CNG rental car shuttles at Los Angeles International Airport and McCarren Airport in Las Vegas.
Having doubled its natural gas street sweeper fleet in the past 36 months, Sunset Property Services in Irvine, CA, has signed a three-year fuel renewal contract for an expected 180,000 gallons of Redeem over the duration of the agreement.
Western Eagle Shuttle in the California Bay Area is now fueling with Clean Energy, having signed a three-year contract for an anticipated 90,000 gallons of Redeem to fuel passenger shuttles at San Francisco International Airport.
Strides in Solid Waste
The City of Tucson, AZ, has signed a multi-year maintenance agreement with Clean Energy. The City has over 75 CNG waste and recycling trucks and 50 CNG transit buses that combined use over two million gallons annually.
The City of Philadelphia has started to replace its diesel refuse trucks with CNG trucks, contracting with Clean Energy to retrofit its city garage to make it CNG-compliant. Clean Energy will also design, build, operate and maintain a 43-truck private time-fill CNG station, with room for expansion, at the same location. The City has already received its first two CNG refuse trucks which are temporarily fueling at Clean Energy’s Philadelphia Airport Station. Philadelphia will be consuming an estimated 250,000 gallons of CNG when it reaches 43 trucks in 2021. Clean Energy also has a ten-year maintenance contract for this station.
The City of Spokane Solid Waste Collection department is a designated solid waste hauler, providing residential and commercial garbage, recycling, and yard waste/food scrap collection services. In 2015, the City built a private CNG fueling station and started converting its fleet of 70 refuse trucks. Spokane continues to grow its CNG refuse fleet and currently operates approximately 40 CNG trucks. The City and Clean Energy have agreed to extend their existing comprehensive maintenance services agreement.
Homewood Disposal Inc., headquartered in Homewood, IL, is adding 13 CNG refuse trucks to its fleet that will fuel with an expected 150,000 gallons of CNG per year.
"Our CNG program continues to be a great success story for Homewood Disposal and our customers," said Kyle Yonkers, Homewood Disposal. "For every diesel truck we replace with CNG, the environmental impact helps our customers with cleaner air and quieter trucks in their neighborhoods."
Clean Energy has extended its multi-year Long Beach Transit maintenance agreement. Long Beach Transit uses 100 percent Redeem at its "LBT2" Transit Maintenance Facility, the home to 125 CNG buses.
Expansion in Canada
BC Transit, which provides public transit services to dozens of British Columbia communities located outside Metro Vancouver, has once again contracted with Clean Energy to design, build and maintain a CNG station in Langford. This agreement includes upgrading the existing Langford garage and fueling island to make them CNG-compatible. This station will initially fuel approximately 60 CNG buses with an ultimate capacity of 120 buses with a minimum of 8 million gallons dispensed over the life of the 13-year contract.
Long-time partner, Translink – Coast Mountain Bus, located in Metro Vancouver, has signed a new multi-year maintenance agreement with Clean Energy for its CNG stations located in Port Coquitlam, Richmond and Surrey. As part of the agreement Clean Energy will be replacing two old and smaller compressors with a new higher capacity Clean Energy compressor, installing a new larger dryer and providing PLC upgrades at Port Coquitlam. Approximately 25 million gallons will be dispensed over 10 years.
"Clean Energy is very proud to continue our partnership with Translink – Coast Mountain Bus and looks forward to working with them as they continue to add to their fleet of approximately 300 clean burning natural gas buses located at their three stations," said Lindholm.
The City of London, Ontario, is transitioning a fleet of 37 refuse trucks to CNG at the rate of 10 vehicles per year over the next few years. The trucks will fuel at the Clean Energy retail station at the London Pilot Flying J station, consuming an anticipated 51,000 gallons per year.
Clean Energy also renewed its CNG station maintenance agreements with transit agencies for the Cities of Medicine Hat and Red Deer, Alberta.
1Zero-Carbon is based on the average carbon index score (approved by the California Air Resources Board) of Clean Energy’s fuel supply portfolio.
About Clean Energy
Clean Energy Fuels Corp. is the leading provider of natural gas fuel and renewable natural gas (RNG) fuel for transportation in the United States and Canada, with a network of approximately 540 stations across North America that it owns or operates. Clean Energy builds and operates compressed natural gas (CNG) and liquefied natural gas (LNG) stations and delivers more CNG, LNG and RNG vehicle fuel than any other company in the United States. Clean Energy sells Redeem™ RNG fuel and believes it is the cleanest transportation fuel commercially available, reducing greenhouse gas emissions by at least 70%. Clean Energy owns natural gas liquefaction facilities in California and Texas that produce LNG for the transportation and other markets. For more information, visit www.CleanEnergyFuels.com.
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 the numbers of natural gas vehicles expected to be deployed; amounts of RNG and natural gas fuel expected to be consumed; and the benefits of natural gas vehicles, RNG and natural gas. 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, without limitation, the price of natural gas relative to gasoline and diesel, and the cost and operating experience associated with natural gas vehicles. 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. Additionally, the reports and other documents the Company 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.
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