Clean Energy and Maas Energy Works Join Forces to Build Nine Renewable Natural Gas Dairy Production Facilities Across Seven States
Clean Energy Fuels and Maas Energy Works have announced a joint venture to build nine renewable natural gas (RNG) production facilities at dairy farms across seven states, including Colorado, South Dakota, Georgia, Florida, Iowa, Nebraska, and New Mexico. This project aims to handle manure from around 35,000 cows, preventing methane emissions from being released into the atmosphere.
Each of these nine projects will undergo diligence before construction, with completion expected by 2026. These facilities are anticipated to produce up to 4 million gallons of RNG annually, which will be distributed through Clean Energy's network. The facilities will use lagoon cover digesters to capture methane more cost-effectively compared to traditional tank digesters.
Financed by Clean Energy, the total projected cost is approximately $130 million. The joint venture leverages Maas Energy Works' expertise in RNG development and Clean Energy's distribution network to supply clean fuel to transportation fleets, helping them achieve sustainability goals.
- The venture will build nine RNG facilities across seven states, increasing infrastructure.
- The project will manage manure from 35,000 cows, reducing methane emissions.
- Facilities will produce up to 4 million gallons of RNG annually, enhancing fuel supply.
- Low-cost lagoon cover digesters will be used, making construction and operation more economical.
- The total investment of $130 million signals strong financial backing from Clean Energy.
- Expected completion by 2026 provides a clear timeline for investors.
- The partnership combines Clean Energy's distribution network with Maas Energy Works' expertise, ensuring efficiency.
- Each project is subject to finalizing diligence before construction can begin, posing potential delays.
- High initial investment of $130 million could impact short-term financials.
- Completion is not expected until 2026, requiring long-term investor patience.
- Potential operational risks associated with new facility construction and integration.
Insights
The joint development agreement between Clean Energy Fuels Corp. and Maas Energy Works is noteworthy for its potential environmental impact. Renewable Natural Gas (RNG) is derived from methane emissions captured from dairy farms, transforming a potent greenhouse gas into a valuable energy resource. Dairy manure is a significant source of methane, a greenhouse gas roughly
This project is significant because it will capture emissions from herds totaling about 35,000 cows, preventing these emissions from contributing to climate change. The expected production of
The financial implications of the joint venture between Clean Energy Fuels Corp. and Maas Energy Works are substantial. The total project cost of approximately
Moreover, this partnership leverages Maas Energy Works’ expertise in dairy digester projects, which could result in lower operational costs and higher efficiency. Investors should monitor the progress of these projects, as delays or cost overruns could impact returns. However, if successful, the venture could enhance Clean Energy's market position and contribute positively to their revenue streams, especially given the regulatory and consumer shift towards green energy solutions.
The joint venture's market implications are promising, given the current energy market trends towards sustainability. The transportation sector, accounting for
Understanding consumer and regulatory trends is critical. With ongoing support for renewable energy and stricter emissions regulations, the demand for RNG is likely to grow. This project could also provide a competitive edge by aligning with environmental goals and appealing to eco-conscious stakeholders. However, market stability and clear policy frameworks will be important for sustained growth and profitability.
Clean Energy Fuels and Maas Energy Works Logos (Graphic: Business Wire)
This new endeavor will include dairies located in
The nine projects, each subject to finalizing diligence before beginning construction, are expected to be completed in 2026 and will produce up to an estimated 4 million gallons of ultra-clean RNG annually, a negative carbon-intensity transportation fuel which will make its way into Clean Energy’s nationwide network of RNG stations.
Industry pioneer Maas Energy Works has completed over 60 dairy digester projects over the past decade. The team specializes in lagoon cover digesters which involve a large tarp over a manure lagoon to capture the methane emissions. This process makes these facilities significantly less expensive to build and operate compared to tank digesters seen at other RNG plants. Financed by Clean Energy, the nine sites are forecasted to cost approximately
“This JV brings together expertise from a seasoned RNG developer and producer and Clean Energy’s extensive RNG distribution network and growing RNG customer base. We are excited to continue our long working relationship with the team at Maas Energy Works to get these facilities online and producing pipeline quality RNG to help supply our transportation fleet customers with clean fuel to help them meet their sustainability goals,” said Clay Corbus, senior vice president at Clean Energy.
“This joint venture is clear proof that family farms paired with private businesses are an unstopped force in achieving decarbonization. If the markets for renewable fuels are clear and consistent, then American’s biogas industry will deliver. We will soon be capturing fugitive manure emissions and turning them into carbon-negative truck fuel with our partners at Clean Energy," said Daryl Maas, CEO of Maas Energy Works.
Agriculture accounts for nearly 10 percent of
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 benefits of the joint development agreement including the number, location and herd size of dairy digester projects proposed to be constructed, the timeframe for such construction and the anticipated investment pursuant to the joint development agreement; the amounts and timing of manure expected to be produced; the amounts and timing of natural gas expected to be produced or consumed; the relative cost of construction between lagoon cover digesters and tank digesters; 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 Maas Energy Works
Maas Energy Works is a family-owned business based in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240514059909/en/
Clean Energy Media Contact:
Kimberly Fleer
1-949-437-1447
Kimberly.Fleer@cleanenergyfuels.com
Clean Energy Investor Contact:
Thomas Driscoll
1-949-437-1191
Thomas.Driscoll@cleanenergyfuels.com
Maas Energy Works Media Contact:
Dallas Spiecker
1-530-710-8545 ext 2105
dallas.spiecker@maasenergy.com
Maas Energy Works Investor Contact:
Stephen Hatley
1-530-710-8545 ext 2102
stephen@maasenergy.com
Source: Clean Energy Fuels Corp.
FAQ
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