Growing Number of Fleets Are Asking for the Clean Fuel
BP
p.l.c. (NYSE: BP) and Clean
Energy Fuels Corp. (Nasdaq: CLNE)
today announced an agreement which will secure an increased supply of renewable
natural gas (RNG) for Clean Energy through Clean Energy’s extensive fueling
infrastructure as more fleets are requesting the clean fuel. The
agreement enables BP to flow larger volumes to Clean Energy stations as
the supply of RNG is expected to rapidly grow over the next several
years with a number of new RNG production facilities under construction
and more announced. In turn, Clean Energy will share in the incremental
environmental credit revenues generated from the incremental RNG volume.
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Renewable
natural gas fuel, or biomethane, is produced entirely from organic
waste. As a fuel for natural gas vehicles, including heavy-duty trucks,
it is estimated to result in 70 percent lower greenhouse gas emissions
than from equivalent gasoline or diesel fuel vehicles, which makes it
the cleanest fuel available anywhere. Clean Energy has grown sales of
its Redeem™ branded RNG from 22 million gasoline equivalent gallons
(GGEs) in 2014, the first full year it was available, to an expected 100
million GGEs in 2018.
“The growth of our Redeem RNG has been astounding as municipalities
and companies all over the country are achieving their sustainability
and greenhouse gas reduction goals by switching their fleets,” said
Andrew J. Littlefair, Clean Energy’s president and chief executive
officer. “This agreement combines BP’s significant investments in RNG
projects and supply network with Clean Energy’s vehicle fueling network
and will help to create certainty for future RNG project development and
continue to accelerate adoption of natural gas vehicle fueling.”
“As one of the largest suppliers of renewable natural gas to the U.S.
transportation sector, BP is committed to supporting the transition to a
lower-carbon energy future,” said Sean Reavis, BP senior vice president
– global environmental products. “Our agreement with Clean Energy
reflects that commitment, and we believe today’s announcement will help
to accelerate the growth of RNG and promote a more sustainable energy
mix.”
Redeem™
renewable natural gas is derived from biogenic methane, biomethane
or biogas, which is methane that is naturally generated by the
decomposition of organic waste. The methane gas is processed, purified
and sent into the interstate natural gas pipeline and is currently made
available exclusively to Clean Energy customers.
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 530 stations across North
America that we own or operate. We build and operate compressed natural
gas (CNG) and liquefied natural gas (LNG) stations and deliver more CNG,
LNG and RNG vehicle fuel than any other company in the U.S. Clean Energy
sells Redeem™ RNG fuel and believes it is the cleanest transportation
fuel commercially available, reducing greenhouse gas emissions by up to
70%. Clean Energy owns natural gas liquification facilities in
California and Texas which produce LNG for the transportation and other
markets. For more information, visit www.CleanEnergyFuels.com.
About BP:
BP is a global producer of oil and gas with operations in over 70
countries. BP has a larger economic footprint in the U.S. than in any
other nation, and it has invested more than $100 billion here since
2005. BP employs about 14,000 people across the U.S. and supports more
than 106,000 additional jobs through all its business activities. For
more information on BP in America, visit www.bp.com/us.
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, including statements about, among
other things: the potential impact of the agreement between Clean Energy
and BP on Clean Energy’s business and performance; the volume of Redeem
expected to be sold by Clean Energy in 2018; and the benefits of
renewable natural gas as an alternative vehicle fuel.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual achievements,
performance or other events to be materially different from any future
achievements, performance or other events expressed or implied by the
forward-looking statements. Factors that might cause or contribute to
such differences include, among others: future supply, demand, use and
prices of crude oil, gasoline, diesel, natural gas, other vehicle fuels,
and heavy-duty trucks and other vehicles and engines powered by these
fuels, including overall levels of and volatility in these factors; the
willingness of fleets and other consumers to adopt renewable and
conventional natural gas as a vehicle fuel, and the rate of any such
adoption; Clean Energy’s ability to capture a substantial share of the
market for alternative vehicle fuels and vehicle fuels generally and
otherwise compete successfully in these markets; Clean Energy’s ability
to accurately predict renewable and conventional natural gas vehicle
fuel demand in the geographic and customer markets in which it operates
and effectively calibrate its strategies, timing and levels of
investments to be consistent with this demand; Clean Energy’s ability to
recognize the anticipated benefits of its fueling station network; Clean
Energy’s ability to manage and grow its renewable natural gas business;
changes to federal, state or local greenhouse gas emissions regulations
or other environmental regulations applicable to natural gas production,
transportation or use; and general political, regulatory, economic,
market and other conditions.
As a result of these and other potential risks and uncertainties, the
forward-looking statements made in this press release should not be
relied on or viewed as predictions of future events. All forward-looking
statements in this press release are made only as of the date of this
press release and, except as required by law, Clean Energy undertakes no
obligation to update publicly any forward-looking statements for any
reason, including to conform these statements to actual results or to
changes in expectations. Additionally, the reports and other documents
Clean Energy files with the Securities and Exchange Commission,
available at www.sec.gov,
contain additional information about these and other risk factors that
may cause actual results to differ materially from the forward-looking
statements contained in this press release.
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