10/11/2018 | Press release | Distributed by Public on 10/11/2018 04:51
Growing Number of Fleets Are Asking for the Clean Fuel
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Oct. 11, 2018-- 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.
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.
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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Source: Clean Energy Fuels Corp.