Clean Energy and Total to create JV to develop carbon-negative RNG and infrastructure in US; $50M from bp
27 December 2020
Clean Energy Fuels Corp. and its largest shareholder, Total S.E., will create a 50/50 joint venture to develop carbon-negative renewable natural gas (RNG) production facilities in the United States, as well as credit support to build additional downstream RNG fueling infrastructure.
Total will provide $50 million and Clean Energy $30 million for the proposed joint venture and Total will be providing credit support of $65 million to support Clean Energy development in the RNG value chain, including $45 million for contracted RNG fueling infrastructure.
The companies have already partnered to expand the use of RNG in the heavy-duty truck market with its Zero Now program, which allows fleets to purchase natural gas trucks for the same price as diesel trucks.
The demand for carbon-negative RNG, which is derived from dairies and other agricultural facilities, has rapidly accelerated through the Zero Now program with trucking companies such as Kenan Advantage, KeHE Distributors, Estes Express Lines, Tradelink Transport, among many others.
Negative-carbon RNG is produced when carbon emissions are captured from dairies and turned into a transportation fuel, reducing the harmful effects on long-term climate change. As a result, the California Air Resources Board gives these carbon-negative RNG projects a carbon intensity (CI) Score (gCO2e/MJ) of -250 (or lower) compared to 97 for diesel and 46 for batteries for EVs.
Clean Energy is the largest provider of RNG as a transportation fuel in the United States and Canada, and the largest RNG fuel provider under the California LCFS program.
Clean Energy’s goal is to meet the rapidly growing demand by customers for carbon-negative RNG and to deliver 100% Redeem branded RNG to its entire fueling infrastructure by 2025.
$50M from bp. Separately, Clean Energy Fuels announced plans work with BP Products North America Inc, a subsidiary of BP p.l.c. to develop, own and operate new renewable natural gas (RNG) facilities at dairies and other agriculture facilities.
Carbon-negative RNG is being used today by thousands of vehicles with more and more fleets requesting it every week. Taking this next step allows us to expand the availability of the fuel while providing dairy owners with a way to make a significant impact on the environment and create an additional revenue stream.
—Andrew J. Littlefair, CEO and president of Clean Energy
Clean Energy has already identified potential RNG-producing projects and has plans to deploy funds for development and construction expenses in 2021.
RNG can be part of a solution, we don't have enough right now.
Posted by: SJC_1 | 30 December 2020 at 05:59 AM