Clean Energy Turns DFW Area into a Renewable Natural Gas Hub

Rhea-AI Summary

Clean Energy Fuels Corp. (CLNE) opens two new RNG fueling stations in Texas, expanding its network to over 600 stations. The stations cater to heavy-duty trucks and fleets, offering RNG as a carbon-negative fuel. The company invests in RNG production at dairy farms to reduce GHG emissions, aligning with carbon reduction goals embraced by many fleets. The announcement coincides with the anticipation of a new natural gas engine for heavy-duty trucks, the Cummins' X15N, which is being tested by major fleets like Walmart and FedEx Freight.

Insights

Environmental Economist

The opening of two new fueling stations by Clean Energy Fuels Corp. signals a strategic move in the transportation sector, particularly for heavy-duty trucking. The location of these stations in key logistics hubs near Dallas and Fort Worth aligns with the broader trend of decarbonizing the transportation industry. By providing renewable natural gas (RNG), these stations are facilitating a shift towards cleaner energy sources, potentially reducing greenhouse gas (GHG) emissions.

From an economic perspective, the adoption of RNG can influence fuel costs for fleet operators, potentially offering savings compared to diesel. This could impact the operating margins of transportation companies and, by extension, their stock performance. Moreover, the investment in RNG production at dairy farms could stimulate rural economies and contribute to a circular economy, where waste from agriculture is transformed into a valuable energy resource.

However, the scalability and long-term viability of RNG as a negative carbon-intensity fuel will depend on the continued development and adoption of related technologies, such as the Cummins’ X15N engine. The environmental benefits must be weighed against the infrastructure costs and the potential need for subsidies to make RNG competitive with conventional fuels.

Energy Sector Analyst

The expansion of Clean Energy's fueling network with two new RNG stations is a significant development for the energy sector. It demonstrates the growing market for alternative fuels and the company's commitment to expanding its infrastructure to meet this demand. RNG is increasingly recognized for its low carbon footprint and as more fleets adopt this fuel, Clean Energy could see an uptick in demand for its services.

The introduction of the Cummins’ X15N engine is a critical factor that could accelerate the transition to RNG for heavy-duty trucks. If the engine delivers on its promise of compatibility with RNG while maintaining performance and reliability, it could disrupt the market for heavy-duty truck engines and create a competitive advantage for early adopters like Clean Energy.

Investors should monitor the performance of these new stations and the adoption rate of RNG-powered vehicles. The success of these initiatives may have a ripple effect on Clean Energy's financials, potentially increasing revenue streams and enhancing market share within the alternative fuel sector.

Sustainability Expert

The environmental implications of the new RNG fueling stations are profound, particularly in the context of the transportation sector's impact on GHG emissions. RNG stands out as a sustainable fuel option, derived from biogas captured at dairy farms, which can lead to a reduction in methane—a potent GHG. By converting agricultural waste into RNG, Clean Energy is effectively turning a pollutant into a resource, contributing to the reduction of the overall carbon footprint of the transportation sector.

It is also worth noting that RNG's carbon-negative rating is contingent upon rigorous lifecycle assessments that account for emissions reduction from both the source and the vehicle. This holistic approach to evaluating fuel impact is crucial for stakeholders to understand the true sustainability benefits of RNG. The expansion of RNG infrastructure could serve as a model for other regions and industries, showcasing the potential for large-scale environmental benefits through innovative energy solutions.

Opening of Two New Stations Allows Fleets to Easily Operate on Ultra-Low Carbon Fuel

HASLET & DALLAS, Texas--(BUSINESS WIRE)-- Clean Energy Fuels Corp. (Nasdaq: CLNE) announced the opening of two new fueling stations that offer heavy-duty truck and other fleet vehicles renewable natural gas (RNG), one of the only fuels that receives a carbon-negative rating. A station in North Fort Worth, near Alliance and DFW airports, and another in South Dallas close to I-45, I-35 and I-20, are strategically located near dozens of distribution centers and allow trucks to take advantage of a fuel that provides similar convenience as diesel, yet is rated as one of the cleanest in the world.

Clean Energy Dallas South Lancaster Renewable Natural Gas Station (Photo: Business Wire)

The two stations expand Clean Energy’s fueling network of over 600 stations, and open at a time when RNG is becoming a fuel that many fleets are embracing to meet their carbon emissions reduction goals. A new 15-liter natural gas engine for heavy-duty trucks, the Cummins’ X15N, is anticipated to be commercially available later in 2024 and is currently being tested by some of the largest and most demanding fleets in the country, including Walmart, Werner, Knight Swift, FedEx Freight and UPS. The early reaction to the X15N has been positive at a time when the heavy-duty truck market continues to struggle to find affordable and reliable alternatives to decarbonize their fleets.

In addition to heavy-duty truck fleets, there are seven hundred Dallas Area Rapid Transit (DART) buses, hundreds of sanitation trucks, airport shuttles and other vehicles that support DFW and Austin-Bergstrom airports, all of which operate on ultra-clean RNG.

“The Dallas-Fort Worth area is already one of the biggest transportation hubs in the country and it is only getting bigger. These two new stations will provide heavy-duty truck fleets with the ease of fueling with RNG, which is becoming more recognized as the cleanest, most affordable, and readily available alternative fuel for the transportation market,” said Chad Lindholm, senior vice president of sales at Clean Energy.

The North Fort Worth station is located at 895 Railhead Drive, Haslet, TX 76177, adjacent to Alliance airport. It sits on almost 8 acres and is equipped with multiple fast-fill fuel dispensers allowing heavy-duty vehicles to easily get in-and-out within 10-15 minutes with a full tank of RNG. It also offers 82 private overnight fueling posts for heavy-duty trucks, allowing for cost-effective fueling, as well as 54 parking bays for box trucks and 140 for drivers’ personal vehicles.

The address of the South Dallas station is 4480 Logistics Drive, Dallas, TX 75241 and occupies 5.7 acres near Lancaster, bordered by I-35 to the east, I-20 to the north and I-45 to the west. It is equipped with multiple fast-fill dispensers, 80 private overnight fuel posts for heavy-duty trucks, 120 parking places for drivers’ vehicles and 41 for box trucks.

Clean Energy is also investing hundreds of millions of dollars in the production of RNG at dairy farms in the U.S., including a facility at Del Rio Dairy in Friona, TX, which began producing RNG in 2023, and another is expected to begin construction at South Fork Dairy in Dimmitt, TX, soon. Agriculture accounts for nearly 10% of U.S. greenhouse gas (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 transportation 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/20240226202543/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

Where are the two new fueling stations opened by Clean Energy Fuels Corp. (CLNE)?

The two new fueling stations are located in North Fort Worth near Alliance and DFW airports, and South Dallas close to I-45, I-35, and I-20.

What is the significance of RNG as a fuel offered by Clean Energy Fuels Corp. (CLNE)?

RNG is considered one of the cleanest fuels in the world and receives a carbon-negative rating, aligning with carbon emissions reduction goals embraced by many fleets.

Which major fleets are testing the new Cummins' X15N natural gas engine for heavy-duty trucks mentioned in the press release by Clean Energy Fuels Corp. (CLNE)?

Major fleets like Walmart, Werner, Knight Swift, FedEx Freight, and UPS are testing the Cummins' X15N natural gas engine for heavy-duty trucks.

How is Clean Energy Fuels Corp. (CLNE) contributing to reducing GHG emissions?

Clean Energy is investing in RNG production at dairy farms to capture methane from farm waste, significantly lowering GHG emissions in the transportation sector.

What percentage of U.S. greenhouse gas emissions does agriculture and the transportation sector account for?

Agriculture accounts for nearly 10% of U.S. GHG emissions, while the transportation sector accounts for another 28%.