Clean Energy Fuels, Total sign JV to develop RNG production
Clean Energy Fuels and Total have signed a 50/50 joint venture (JV) to develop renewable natural gas (RNG) production facilities in the US.
The initial firm commitment is $100 million (€83 million) and can increase to $400 million (€332 million) as development opportunities progress.
Since Clean Energy and Total will be providing the equity portion of the investments, the actual amount of capital invested in RNG projects may be higher than $400 million (€332 million), depending on the amount of leverage deployed.
Total will be providing credit support for Clean Energy’s development in the RNG value chain, including $45 million (€37.3 million) for contracted RNG fuelling infrastructure.
Clean Energy is the largest provider of RNG as a transport fuel in the US, and the largest RNG fuel provider under the California Low Carbon Fuel Standard (LCFS) programme. RNG can be used directly as a vehicle fuel or as a feedstock to produce green hydrogen or green electricity, and still generate LCFS environmental credits.
Andrew Littlefair, CEO and president of Clean Energy, said: “The finalisation of this JV with Total, which was originally announced in December last year, demonstrates the commitment both companies have to the growth of RNG, a fuel that can tackle serious climate issues today.
“The demand by customers for RNG continues to accelerate, highlighted by our recent announcement that the largest bus fleet in the US, LA Metro, had converted its entire fleet to RNG. This JV will help Clean Energy to continue to increase its supply of RNG in the years ahead.”
The two companies have already partnered to expand the use of RNG in the heavy-duty truck market through the Zero Now programme, which allows fleets to purchase RNG trucks for the same price as their diesel counterparts. Trucking firms such as Kenan Advantage, KeHE Distributors, Estes Express Lines and Tradelink Transport have taken advantage of the scheme.
The initial firm commitment is $100 million (€83 million) and can increase to $400 million (€332 million) as development opportunities progress.
Since Clean Energy and Total will be providing the equity portion of the investments, the actual amount of capital invested in RNG projects may be higher than $400 million (€332 million), depending on the amount of leverage deployed.
Total will be providing credit support for Clean Energy’s development in the RNG value chain, including $45 million (€37.3 million) for contracted RNG fuelling infrastructure.
Clean Energy is the largest provider of RNG as a transport fuel in the US, and the largest RNG fuel provider under the California Low Carbon Fuel Standard (LCFS) programme. RNG can be used directly as a vehicle fuel or as a feedstock to produce green hydrogen or green electricity, and still generate LCFS environmental credits.
Andrew Littlefair, CEO and president of Clean Energy, said: “The finalisation of this JV with Total, which was originally announced in December last year, demonstrates the commitment both companies have to the growth of RNG, a fuel that can tackle serious climate issues today.
“The demand by customers for RNG continues to accelerate, highlighted by our recent announcement that the largest bus fleet in the US, LA Metro, had converted its entire fleet to RNG. This JV will help Clean Energy to continue to increase its supply of RNG in the years ahead.”
The two companies have already partnered to expand the use of RNG in the heavy-duty truck market through the Zero Now programme, which allows fleets to purchase RNG trucks for the same price as their diesel counterparts. Trucking firms such as Kenan Advantage, KeHE Distributors, Estes Express Lines and Tradelink Transport have taken advantage of the scheme.
