International Paper Extends Natural Gas “Virtual Pipeline” Contract with NG Advantage for Ticonderoga, NY Mill
NG
Advantage LLC, a majority-owned subsidiary of Clean
Energy Fuels Corp. (NASDAQ: CLNE), today announced that it has
signed an eighteen month contract extension with International Paper.
Under this extension, NG Advantage will continue delivering
clean-burning compressed natural gas (CNG) to International Paper’s
Ticonderoga, NY paper mill using its virtual or mobile pipeline of
tractor-trailers that deliver 24/7. This is the largest mobile pipeline
project in the U.S. and showcases the scalability of NG Advantage’s
service to deliver natural gas as an alternative fuel choice for even
the largest industrial energy users.
“It’s a pleasure to work with the very innovative people at
International Paper and help them meet their environmental and financial
goals in a rapidly changing world,” said NG Advantage CEO Tom Evslin.
“The service to the IP mill demonstrates that our trucked CNG platform
has successfully been scaled to meet demand which would have formerly
required a special pipeline extension.”
International Paper had long been planning a switch to natural gas to
displace much of the #6 fuel oil used at the Ticonderoga mill in order
to substantially reduce its environmental footprint and enjoy the price
stability of the domestic fuel. The mill had originally planned to pay
much of the cost of a traditional pipeline extension from Vermont to
Ticonderoga, NY, and sought bids for trucked CNG only for interim
service until the pipeline arrived. NG Advantage, which was the first
company to provide virtual pipeline service in the U.S., received the
contact for that interim service in 2014.
A mill as large as Ticonderoga requires a customized end-to-end energy
supply chain. NG Advantage designed new hardware, developed new
procedures, and built extensions to its cloud-based SCADA (control
software). The result was deliveries beginning on schedule in May of
2015 with NG Advantage providing the mill with approximately eighteen
trailer loads of clean, inexpensive natural gas daily.
International Paper canceled plans for the pipeline because of
escalating delays and costs and issued an RFP for long-term virtual
pipeline service to keep natural gas in their fuel mix. After evaluating
bids, International Paper chose to extend its existing contract with NG
Advantage.
International Paper is the seventh paper mill and the twenty-sixth
location to contract with NG Advantage. Natural gas delivered 24/7 by
truck gives plants an experience much like being on a traditional
pipeline without the long term capital commitment of a pipeline
extension. Burning natural gas instead of oil products reduces CO2
emissions by 26%; substituting natural gas for coal reduces CO2
by about 50%. Natural gas use also eliminates almost all Sulphur and
particulate emissions and enables a substantial reduction in nitrous
oxides.
About NG Advantage LLC:
NG
Advantage is a U.S.-based mid/downstream provider and the leader in
the new “virtual pipeline” industry of trucking compressed natural gas
(CNG) in the U.S. NG Advantage’s virtual pipeline service brings the
economic and environmental benefits of North American natural gas to
large institutions and industrial customers without access to a
pipeline. The Company’s current customers include large regional
hospitals, paper mills, asphalt facilities, food processors, industrial
dry cleaners, LDCs, and manufacturing facilities. Facilitated by the
purchase of a controlling interest in the company by Clean
Energy Fuels (NASDAQ: CLNE), NG Advantage is expanding its service
area nationwide. For more information on NG Advantage, see www.ngadvantage.com.
About Clean Energy:
Clean
Energy Fuels Corp. (NASDAQ: CLNE) is the leading provider of natural
gas fuel for transportation in North America. We build and operate
compressed natural gas (CNG) and liquefied natural gas (LNG) fueling
stations; manufacture CNG and LNG equipment and technologies for
ourselves and other companies; develop renewable natural gas (RNG)
production facilities; and deliver more CNG, LNG and Redeem RNG fuel
than any other company in the U.S. For more information, visit www.cleanenergyfuels.com.
See more at: https://www.cleanenergyfuels.com/.
About International Paper:
International
Paper (NYSE: IP) is a global leader in packaging and paper with
manufacturing operations in North America, Europe, Latin America,
Russia, Asia and North Africa. Its businesses include industrial and
consumer packaging along with uncoated papers and pulp. Headquartered in
Memphis, Tenn., the company employs approximately 58,000 people and is
strategically located in more than 24 countries serving customers
worldwide. International Paper net sales for 2014 were $24 billion. For
more information about International Paper, its products and stewardship
efforts, visit internationalpaper.com.
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Copyright Business Wire 2015
Source: Business Wire
(October 15, 2015 - 6:00 AM EDT)
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