Cemex US Signs Renewable Natural Gas Fuel Agreement with Clean Energy to Power Fleet in Southern California
Cemex has signed a renewable natural gas (RNG) fuel agreement with Clean Energy Fuels Corp. (NASDAQ: CLNE) to power 39 of its ready-mix and cement bulk trucks in Southern California. This partnership will provide roughly 300,000 gallons of RNG annually, significantly reducing greenhouse gas emissions by approximately 8,822 metric tons of CO2e each year. Clean Energy will also build and manage a new private fueling station for Cemex in Rialto, CA, expected to be operational by year-end. This initiative supports Cemex's Future in Action program, aiming for net-zero CO2 emissions by 2050.
- Cemex and Clean Energy's agreement will provide 300,000 gallons of RNG annually.
- RNG will reduce Cemex fleet emissions by 8,822 metric tons of CO2e per year.
- New private fueling station in Rialto, CA, will be operational by the end of the year.
- RNG reduces greenhouse gas emissions by an average of 300% versus diesel.
- The initiative aligns with Cemex's net-zero CO2 emissions target by 2050.
- No specific financial terms of the agreement were disclosed, potentially leaving investors in the dark about cost implications.
- The project timeline indicates a potential delay if the construction of the fueling station is not completed by the end of the year.
Insights
The recent agreement between Cemex and Clean Energy Fuels Corp to power 39 of Cemex's trucks with renewable natural gas (RNG) marks a significant step in the construction industry’s shift towards sustainability. RNG, derived from organic waste materials, has a negative carbon intensity meaning it actually helps reduce overall greenhouse gas emissions. Cemex's move to RNG can potentially cut down CO2 emissions by 8,822 metric tons annually, equivalent to removing 1,981 gasoline-powered vehicles from the road. This demonstrates a practical application of RNG in commercial operations, positioning Cemex as a pioneer in environmental stewardship within its sector. For investors, this highlights a tangible implementation of Cemex’s commitment to sustainability and may enhance its reputation, potentially leading to increased consumer trust and future investment opportunities.
From a financial perspective, the partnership with Clean Energy Fuels Corp aligns with Cemex’s broader strategic goals. The shift to RNG can lead to cost savings in the long term as RNG prices can be more stable compared to traditional diesel. This move also shows Cemex’s proactive approach in adhering to potential future regulatory changes aimed at reducing carbon emissions. The establishment of a dedicated fueling station in Rialto, CA, suggests a significant capital investment, but it underscores Cemex’s commitment to lowering operational costs and emissions. This proactive investment in RNG infrastructure may increase stakeholder confidence and can provide Cemex with a competitive edge in an increasingly environmentally-conscious market.
Cemex trucks among its
Forecasted to provide approximately 300,000 gallons of RNG annually, the fleet will utilize Clean Energy’s public station network in
Alongside the new fueling deal, Clean Energy will commission a private fueling station exclusively for Cemex’s growing RNG fleet. Located in
Transitioning part of its fleet to RNG is part of Cemex’s Future in Action program which focuses on achieving sustainable excellence through climate action, circularity, and natural resource management with the primary objective of becoming a net-zero CO2 company by 2050. The company is projected to reduce fleet emissions by roughly 8,822 metric tons of CO2e (carbon dioxide equivalent) per year, which is equal to taking 1,981 gasoline-powered passenger vehicles off the road for one year or planting 137,648 trees*.
"As leaders in the building materials industry, we recognize the pivotal role we play in building a more sustainable future. Embracing renewable fuels isn't just an option; it's an imperative,” said Francisco Rivera, Cemex US Regional President – West Region. “What Cemex provides is essential to building communities throughout
“Cemex is not only a world-class leader in the building material space, but also one of the most advanced in how they are thinking about our sustainable future. This expanded RNG truck fleet will help to decarbonize their overall operations as well as mitigate emissions associated with idling trucks on site. Cemex’s RNG fuel agreement with Clean Energy is a significant move forward in reducing their carbon footprint,” said Chad Lindholm, senior vice president at Clean Energy.
Clean Energy currently has a network of over 600 fueling stations around
Forward-Looking Statements
This news 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 that involve risks, uncertainties and assumptions, including without limitation statements about: the amounts and timing of renewable natural gas expected to be produced or consumed; the timing and scope of construction, maintenance, and other projects; the numbers and timing of vehicles expected to be deployed, fueled, maintained, or financed; the characteristics and performance of natural gas engines and trucks; the potential development of the consumer market for RNG; the environmental and other benefits of Clean Energy’s fuels; the availability of environmental, tax and other government regulations, programs and incentives; and the impacts of legislative and regulatory developments. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements. The forward-looking statements made herein speak only as of the date of this press release and, unless otherwise required by law, Clean Energy undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Additionally, the reports and other documents Clean Energy files with the SEC (available at www.sec.gov) contain risk factors, which may cause actual results to differ materially from the forward-looking statements contained in this news release.
About Clean Energy
Clean Energy Fuels Corp. is the country’s largest provider of the cleanest fuel for the transportation market. Our mission is to decarbonize transportation through the development and delivery of renewable natural gas (RNG), a sustainable fuel derived by capturing methane from organic waste. Clean Energy allows thousands of vehicles, from airport shuttles to city buses to waste and heavy-duty trucks, to reduce their amount of climate-harming greenhouse gas. We operate a vast network of fueling stations across the
About Cemex US
Cemex is a global building materials company that provides high-quality products and reliable services with a rich history of improving the wellbeing of those it serves through innovative building solutions, efficiency advancements and sustainability efforts. Its
*EPA Greenhouse Gas Equivalencies Calculator
View source version on businesswire.com: https://www.businesswire.com/news/home/20240530084333/en/
Clean Energy Media Contact:
Kimberly Fleer
1-949-437-1447
kimberly.fleer@cleanenergyfuels.com
Clean Energy Investor Contact:
Thomas
1-949-437-1191
thomas.driscoll@cleanenergyfuels.com
Cemex Media Contact:
cemexusacommunications@cemex.com
1-713-722-1799
Source: Clean Energy Fuels Corp.
FAQ
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