Clean Energy’s Renewable Natural Gas Digester at Tri-Cross Dairy Begins Production
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Insights
The operational launch of Clean Energy Fuels Corp.'s new RNG production facility represents a significant development in the renewable energy sector, particularly within the context of the transportation fuel market. The facility's ability to produce 1 million gallons annually of negative carbon-intensity RNG is a noteworthy achievement, given the increasing emphasis on low-carbon fuel alternatives.
From an environmental economics perspective, the facility contributes to the reduction of greenhouse gas emissions, aligning with broader climate change mitigation goals. The RNG produced has a carbon-intensity score of -330, which is remarkable when compared to traditional fossil fuels and even some electric vehicle emissions, depending on the electricity source. This could potentially lead to a substantial decrease in the overall carbon footprint of the transportation sector, especially heavy-duty trucks that are significant contributors to GHG emissions.
Additionally, the potential generation of federal and state environmental credits could provide Clean Energy with an economic incentive to further invest in RNG production. These credits are part of policy measures designed to support the transition to a low-carbon economy and can be a source of revenue for companies that reduce emissions beyond regulatory requirements.
The introduction of Clean Energy's RNG production facility is timely, coinciding with the anticipated demand surge due to Cummins' release of the X15N natural gas engine for heavy-duty trucks. As the transportation sector seeks cleaner fuel alternatives, RNG stands as a competitive option, particularly for fleets looking to reduce their environmental impact.
Financially, the $34 million investment into the facility construction is indicative of Clean Energy's commitment to expanding its RNG production capabilities. This expansion is strategic, as it positions the company to capitalize on the growing RNG market, which is driven by both environmental policies and increasing consumer demand for sustainable products.
Moreover, the backing of the project by a joint venture and its development by Dynamic Renewables suggest a collaborative approach in the renewable energy industry, fostering innovation and potentially leading to cost efficiencies through economies of scale. For investors, this could signal a robust growth trajectory for Clean Energy, provided that the demand for RNG continues to rise as projected.
The RNG facility's location on a 5,000-cow dairy farm is an excellent example of how sustainable agricultural practices can be integrated with renewable energy production. Methane capture from farm waste not only reduces emissions but also turns a potential pollutant into a valuable resource. This approach aligns with sustainable agriculture principles by creating a closed-loop system that benefits both the farm and the environment.
Given that agriculture accounts for nearly 10 percent of U.S. greenhouse gas emissions, the adoption of such RNG production facilities could have a significant impact on the sector's overall emission profile. The process of converting organic waste into RNG could also offer a new revenue stream for farmers, incentivizing the adoption of methane capture technology.
However, the scalability and replicability of such projects are crucial for their impact on a national or global scale. Stakeholders in the agricultural sector may look to the success of the Tri-Cross Dairy project as a model for similar ventures, potentially transforming waste management practices in the industry.
Tri-Cross Dairy Clean Energy RNG (renewable natural gas) digesters and production facility (Photo: Business Wire)
The new RNG facility sits on a 5,000-cow dairy farm and is forecasted to produce 1 million gallons annually of negative carbon-intensity RNG. The project represents a significant milestone in Clean Energy’s ongoing leadership in providing the cleanest fuel for the transportation market at the company’s network of fueling stations across
The construction costs of the RNG production facility, which includes the build of digesters and processing plant, totaled
“We anticipate 2024 to be a pivotal year in the demand for RNG fuel in the transportation market with the introduction of Cummins’ X15N natural gas engine for heavy-duty trucks. Clean Energy’s fueling infrastructure is expanding to meet that demand and we’ll need a constant source of additional low-carbon RNG to supply those stations. The new production facilities at Tri-Cross Dairy and the other farms in the Midwest that are now producing RNG is a critical component to our strategy,” said Clay Corbus, senior vice president for renewables.
Financing for the Tri-Cross Dairy project is backed by one of Clean Energy’s RNG production joint ventures and developed by Dynamic Renewables. The facility is one in a series of projects in the Midwest for which the companies have partnered together.
Agriculture accounts for nearly 10 percent of
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
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; numbers and timing of vehicles expected to be deployed, fueled, maintained, or financed; 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/20240208353944/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.
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