Clean Energy’s RNG Production Facility Breaks Ground at South Fork Dairy

Rhea-AI Summary

Clean Energy Fuels Corp. (NASDAQ: CLNE) has initiated construction of a renewable natural gas (RNG) production facility at South Fork Dairy in Dimmitt, Texas. This development, set to cost about $85 million, is expected to complete by 2025. The facility, which hosts a 16,000-cow herd, will produce roughly 2.6 million gallons of RNG annually. The RNG produced will be distributed through Clean Energy's national station network. RNG, derived from organic waste, has a negative carbon-intensity score and can reduce greenhouse gas emissions by an average of 300% compared to diesel. The project aligns with efforts to monetize manure waste and reduce environmental footprints, potentially serving as a model for other dairies.

Positive

• Construction of a new RNG facility at South Fork Dairy, estimated at $85 million.
• Expected annual production of 2.6 million gallons of RNG.
• RNG has a negative carbon-intensity score, reducing GHG emissions by 300% compared to diesel.

Negative

• None.

Insights

Environmental Engineer

The groundbreaking of Clean Energy Fuels Corp.'s RNG production facility at South Fork Dairy is a significant development from an environmental standpoint. RNG, produced from organic waste, boasts a negative carbon-intensity score, making it an ultra-clean transportation fuel. This facility aims to produce 2.6 million gallons of RNG annually, utilizing manure waste from the dairy's 16,000-cow herd. This initiative not only helps in managing manure but also significantly reduces greenhouse gas emissions, aligning with global climate goals. The environmental benefits are substantial as RNG can lower greenhouse gas emissions by an average of 300% compared to diesel. Additionally, the project sets a precedent for other dairies and agricultural businesses to adopt similar sustainable practices, potentially leading to wider industry changes.

Financial Analyst

From a financial perspective, the $85 million investment into the South Fork Dairy RNG facility represents a strategic move for Clean Energy Fuels Corp. The project is expected to be completed by 2025 and it will contribute significantly to the company's RNG output, enhancing its supply capacity for its nationwide network of stations. This could lead to increased revenue streams once the facility is operational. Moreover, the production of RNG aligns with market trends favoring sustainable and clean energy sources, potentially attracting more investors and customers. The collaboration with South Fork Dairy and the positive environmental impact may also enhance the company's reputation and brand value. However, investors should consider the project's completion timeline and any potential delays or cost overruns that could impact financial performance.

Market Research Analyst

The development of the RNG facility at South Fork Dairy positions Clean Energy Fuels Corp. well within the growing renewable energy market. RNG has a unique advantage due to its negative carbon-intensity score and its capability to reduce greenhouse gas emissions drastically. This positions the company to benefit from increasingly stringent environmental regulations and the global shift towards sustainable energy solutions. The anticipated production of 2.6 million gallons of RNG annually will likely bolster Clean Energy's market share in the clean transportation fuel sector. Furthermore, the partnership with a well-respected figure in the dairy industry, Frank Brand, enhances credibility and could lead to additional partnerships with other agricultural producers, expanding the company's footprint in the RNG market.

New chapter for South Fork Dairy with RNG facility resuming development

NEWPORT BEACH, Calif. & DIMMITT, Texas--(BUSINESS WIRE)-- Clean Energy Fuels Corp. (NASDAQ: CLNE) announced it has broken ground on a renewable natural gas (RNG) production facility at South Fork Dairy in Dimmitt, TX. Home to a 16,000-cow herd, the facility will produce RNG, an ultra-clean transportation fuel that is made from organic waste and receives a negative carbon-intensity score.

Clean Energy team at South Fork Dairy RNG facility development site (Photo: Business Wire)

The construction of the digesters and processing plant is forecasted to cost approximately $85 million and is expected to be completed in 2025. The South Fork Dairy facility is set to be one of the biggest RNG production developments in the country with an anticipated 2.6 million gallons of RNG to be produced annually once completed. All the RNG fuel produced at the site will make its way into Clean Energy’s nationwide network of stations.

“We are excited to begin construction on the South Fork Texas project. Building anaerobic digesters at a large dairy like South Fork will help the dairy owner, Frank Brand, and his team collect and monetize sizeable amounts of manure waste while also benefiting from the environmental credits an RNG facility brings. We are proud to call Frank, who is one of the most well-respected people in the dairy industry, our partner,” said Clay Corbus senior vice president of renewables at Clean Energy.

“The project not only helps us convert our waste into a clean, useable sustainable fuel, but it also helps us with managing manure which for a dairy of our size is quite a feat. We do this while simultaneously reducing our environmental footprint – it’s a direction I hope many other dairies will look to pursuing,” said Frand Brand, owner of South Fork Dairy.

Agriculture accounts for nearly 10 percent of U.S. greenhouse gas (GHG) emissions, according to the U.S. Environmental Protection Agency. Capturing methane from farm waste can lower these emissions. RNG is a transportation fuel made entirely from organic waste and drastically reduces GHG emissions by an average of 300% versus diesel. It is so clean that the California Air Resources Board gives RNG from dairy farms an average carbon-intensity score of -330, which is substantially lower than electric vehicles charging with electricity on today’s grid.

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: 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 potential development of the consumer market for RNG; the amounts and timing of manure expected to be produced; 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240724955053/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 cost of the RNG facility at South Fork Dairy?

The RNG facility at South Fork Dairy is estimated to cost approximately $85 million.

When is the RNG production facility at South Fork Dairy expected to be completed?

The RNG production facility at South Fork Dairy is expected to be completed by 2025.

How much RNG is the South Fork Dairy facility expected to produce annually?

The RNG facility at South Fork Dairy is expected to produce 2.6 million gallons of RNG annually.

What is the environmental benefit of the RNG produced at South Fork Dairy?

The RNG produced at South Fork Dairy will reduce greenhouse gas emissions by an average of 300% compared to diesel.

What is the carbon-intensity score of RNG from dairy farms?

RNG from dairy farms has an average carbon-intensity score of -330, according to the California Air Resources Board.