Clean Energy’s Latest RNG Production Facility at Minnesota Dairy Begins Injecting Into Pipeline

Rhea-AI Summary

Clean Energy Fuels Corp. (Nasdaq: CLNE) has completed its latest renewable natural gas (RNG) production facility at Ash Grove Dairy in Lake Benton, MN. The facility is now injecting pipeline-quality RNG into the interstate natural gas pipeline grid. At full capacity, it's projected to supply up to 480,000 gasoline gallon equivalent (GGEs) of negative carbon-intensity RNG annually. The $22 million project, developed by Dynamic Renewables, will process up to 60,000 gallons of manure daily, capturing harmful methane and converting it into an estimated 165 MMBtus of RNG per day. This marks Clean Energy's fifth RNG facility to come online in the last nine months, addressing the growing demand for clean-burning fuel in commercial transportation.

Positive

• Completion of new RNG production facility, expanding Clean Energy's renewable fuel capacity
• Projected annual production of 480,000 GGEs of negative carbon-intensity RNG
• Daily processing capacity of 60,000 gallons of manure, converting to 165 MMBtus of RNG
• Fifth RNG facility to come online in the last nine months, showing rapid expansion
• Addressing growing demand for clean-burning fuel in commercial transportation

Negative

• Significant capital investment of $22 million for the project

Insights

Renewable Energy Analyst

Clean Energy Fuels Corp.'s completion of its RNG facility at Ash Grove Dairy marks a significant milestone in the company's expansion of renewable fuel production. The facility's capacity to produce 480,000 gasoline gallon equivalents annually is substantial, potentially generating considerable revenue and environmental credits.

The $22 million investment demonstrates Clean Energy's commitment to scaling RNG production. With this being their fifth facility in nine months, it signals strong execution of their growth strategy. The project's ability to process 60,000 gallons of manure daily not only addresses agricultural methane emissions but also creates a valuable energy resource, positioning Clean Energy favorably in the expanding clean transportation fuel market.

Environmental Impact Specialist

The Ash Grove Dairy RNG facility represents a win-win solution for both environmental concerns and energy production. By capturing methane from 2,000 milking cows, the project significantly reduces greenhouse gas emissions from agriculture, which accounts for 10% of U.S. GHG emissions.

The facility's negative carbon-intensity score is particularly noteworthy, as it not only prevents methane release but also replaces high-emission diesel fuel in transportation. This dual impact on both agricultural and transportation emissions (the latter accounting for 28% of U.S. GHG emissions) positions Clean Energy's RNG as a potent tool for climate change mitigation. The scalability of this model across other dairy farms could lead to substantial cumulative environmental benefits.

Financial Analyst

Clean Energy Fuels Corp.'s expansion in RNG production aligns with growing market demand for cleaner fuels. The Ash Grove facility, producing 165 MMBtus of RNG daily, represents a new revenue stream with potential for high margins due to environmental credits. The company's strategy to finance through joint ventures helps manage capital expenditure while scaling operations.

Investors should note the pending applications for federal and state environmental credits, which could significantly boost profitability. The rapid deployment of five facilities in nine months suggests operational efficiency and could lead to economies of scale. However, the $22 million project cost highlights the capital-intensive nature of RNG production, emphasizing the importance of monitoring Clean Energy's balance sheet and cash flows as it continues to expand.

 

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- Clean Energy Fuels Corp. (Nasdaq: CLNE) announced that it has completed its latest renewable natural gas (RNG) production facility at Ash Grove Dairy in Lake Benton, MN. Now producing pipeline quality RNG and injecting it into the interstate natural gas pipeline grid, the facility is projected to supply up to 480,000 gasoline gallon equivalent (GGEs) of negative carbon-intensity RNG annually when at full capacity and will provide Clean Energy’s stations with clean-burning fuel for its commercial transportation fleet customers.

Clean Energy’s RNG production facility at Ash Grove Dairy, Lake Benton, MN. (Photo: Business Wire)

Located on a 55-acre site, Ash Grove Dairy is a multigenerational dairy farm home to more than 2,000 milking cows which produce milk, cheese, yoghurt and now clean RNG. The freestanding one-digester facility will process up to 60,000 gallons of manure each day, capture its harmful methane and prevent it from entering the atmosphere. This biogas will be converted into an estimated 165 MMBtus of RNG every day.

The project, financed through one of Clean Energy’s production joint ventures and developed by Dynamic Renewables, totaled $22 million and has now passed necessary gas testing and is officially producing ready-to-use RNG. Clean Energy is in the process of filing the applications to generate federal and state environmental credits.

“Ash Grove is our fifth renewable natural gas facility to come online in the last nine months,” said Clay Corbus, senior vice president at Clean Energy. “It’s always rewarding to see our efforts come to fruition when we begin injecting. With the growing demand for RNG, and interest really starting to take off as fleets realize how effective and immediate they can fuel cleanly, the RNG produced at Ash Grove will directly help with reducing carbon emissions across the country.”

Agriculture accounts for nearly 10 percent of U.S. GHG emissions and the transportation sector accounts for another 28%, according to the U.S. Environmental Protection Agency. Capturing methane from farm waste lowers these emissions. RNG, produced by that captured methane and used as a transportation fuel, significantly lowers GHG emissions on a lifecycle basis when compared to diesel. This allows RNG to be one of the only fuels to receive a negative carbon-intensity score based on the reduction of emissions at the source and at the vehicle.

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 U.S. and Canada as well as RNG production facilities at dairy farms. Visit www.cleanenergyfuels.com and follow @ce_renewables on X and LinkedIn.

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 amounts and timing of natural gas expected to be produced or consumed; characteristics and performance of natural gas engines and trucks; the environmental and other benefits of Clean Energy’s fuels; the timing and scope of construction, maintenance, and other projects; 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240805613177/en/

Media Contact

Kimberly Fleer

1-949-437-1447

Kimberly.Fleer@cleanenergyfuels.com

Investor Contact:

Thomas Driscoll

1-949-437-1191

Thomas.Driscoll@cleanenergyfuels.com

Source: Clean Energy Fuels Corp.

FAQ

What is the production capacity of Clean Energy's new RNG facility at Ash Grove Dairy?

The new RNG facility at Ash Grove Dairy is projected to supply up to 480,000 gasoline gallon equivalent (GGEs) of negative carbon-intensity RNG annually when at full capacity.

How much did Clean Energy Fuels Corp. (CLNE) invest in the Ash Grove Dairy RNG facility?

Clean Energy Fuels Corp. invested $22 million in the Ash Grove Dairy RNG production facility project.

How many RNG facilities has Clean Energy Fuels Corp. (CLNE) brought online recently?

Clean Energy Fuels Corp. has brought five RNG facilities online in the last nine months, including the Ash Grove Dairy facility.

What is the daily processing capacity of the Ash Grove Dairy RNG facility?

The Ash Grove Dairy RNG facility can process up to 60,000 gallons of manure each day, converting it into an estimated 165 MMBtus of RNG daily.