Municipalities Adopt Cleaner Solutions Inking Agreements with Clean Energy

Rhea-AI Summary

Clean Energy Fuels Corp. (NASDAQ: CLNE) has announced multiple new agreements with various municipalities in the U.S. to provide renewable natural gas (RNG) and associated services. This encompasses contracts with cities like Fort Collins, Beverly Hills, Arcadia, Long Beach, Bakersfield, Tacoma, and many more. These deals highlight a growing demand for sustainable, low-carbon transportation solutions and cover the supply of millions of gallons of RNG annually. The agreements will help these cities meet their environmental and fiscal goals by significantly reducing carbon emissions and promoting sustainability.

Positive

• Clean Energy secured multiple contracts with municipalities, signifying growing market demand for RNG.
• The agreements cover substantial fuel volumes, such as 1.4 million gallons annually for Long Beach Transit and 3.3 million gallons for Garden City Transit Authority.
• These deals strengthen Clean Energy's market position and expand its customer base.
• Winning competitive bids, like those for Fort Collins and Arcadia, demonstrates Clean Energy's competitive edge in the RNG market.

Negative

• Heavy reliance on municipal contracts could expose Clean Energy to risks if public funding or policies change.

Insights

Market Research Analyst

These multiple new agreements signal a strong demand for renewable natural gas (RNG) across various municipalities. This demand aligns with the broader push towards cleaner, sustainable energy solutions, driven by local, state and federal mandates. The diversity and scale of the agreements, ranging from public transit systems to waste collection services, emphasize RNG's versatility and its potential market growth.

For investors, the consistent demand from diverse regions indicates potential revenue stability for Clean Energy Fuels Corp. The broad adoption rate highlights RNG’s acceptance and effectiveness in meeting sustainability goals. This could lead to increased market share and positioning as a leader in the clean energy sector.

In the short term, these agreements will likely boost quarterly revenues and possibly improve profit margins due to economies of scale. Long-term outlooks look favorable as these contracts typically span multiple years, ensuring continued revenue streams and reinforcing Clean Energy's market presence.

Financial Analyst

The contracts detailed translate to a significant 3.3 million gallons for Garden City Transit Authority and 1.4 million gallons for Long Beach Transit alone, which are substantial figures in terms of volume and recurring revenue. These contracts likely come with service agreements, adding another layer of dependable revenue.

It’s important to consider current financial metrics such as profit margins and operating costs. The RNG market is competitive, but Clean Energy’s ability to secure these contracts suggests it has a competitive edge, likely through pricing, service quality, or both. The transition to maintaining and operating stations, rather than just fuel provision, might increase operational costs but also diversify revenue streams and strengthen client relationships.

Short-term investors may expect a positive reaction in stock price as news of these deals reflects positively on revenue forecasts. Long-term stakeholders should watch for how these agreements impact overall financial health and operating efficiency.

Environmental Analyst

These deals highlight RNG's significant environmental benefits. RNG, derived from organic waste, drastically reduces carbon emissions, with claims of up to a 300% reduction compared to diesel. This figure, although robust, might require further scrutiny based on the actual lifecycle emissions of RNG versus competing clean energy sources.

For municipalities, adopting RNG aligns with broader environmental goals and regulatory requirements, driving demand for Clean Energy's services. This indicates a growing trend towards sustainable practices in public sector operations.

Investors should note that the adoption of RNG not only positions municipalities as eco-friendly but possibly opens up avenues for government incentives and funding focused on green initiatives, which could be beneficial for Clean Energy's long-term growth and stability.

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- Clean Energy Fuels Corp. (NASDAQ: CLNE), the largest provider of the cleanest fuel for the transportation market, announced a series of new deals with several municipalities across the country. These agreements represent a collective growing demand within city agencies for more sustainable, low-carbon solutions for their operations.

Clean Energy Renewable Natural Gas (RNG) Station, Port of Long Beach, Calif. (Photo: Business Wire)

“What we are now observing is that municipalities which are eager to meet their environmental and fiscal goals can do this with renewable natural gas (RNG) easily, immediately and cost-effectively. Many cities are now making clean fuel a requirement for their transportation needs because of local, state and federal requirements to reduce emissions. RNG is the best solution to meet those needs,” said Chad Lindholm, senior vice president at Clean Energy.

In a competitive bid, Clean Energy won the contract against other fuel providers to become the sole RNG provider for the City of Fort Collins, Colo. transit and fleet vehicles. RNG is a sustainable transportation fuel made from organic waste which drastically reduces carbon emissions by an average of 300% versus diesel. The deal will cover RNG supply for three fueling stations owned and operated by the city. 500,000 gallons of clean-burning RNG will power 52 transit buses and other service vehicles annually.

“Here in Fort Collins, we are committed to renewable fuels and cleaning up our emissions to help reduce transport-related pollution throughout the city. We are firm believers in sustainability and our desire was to have the greatest percentage of RNG available for our CNG fleet. We are pleased to partner with Clean Energy to fuel our growing fleet and lower the city’s carbon footprint,” said Tracy Ochsner, Director Operation Services at the City of Fort Collins.

The City of Beverly Hills, Calif. has signed a new deal to power its waste vehicles with RNG. The deal is contracted to provide 119,000 gallons of RNG to the city’s 17 solid waste fleet vehicles annually. Clean Energy will also provide monthly maintenance services for their fueling station.

In a competitive bid, Clean Energy won the contract to design and build a private station for the City of Arcadia, Calif. The site is designed to deliver 200,000 gallons of ultra-low carbon fuel annually and will fuel 28 transit buses and utility trucks operating in the city.

Clean Energy was awarded a contract with Long Beach Transit to oversee operations and maintenance of its private fueling station. The deal will provide an expected 1.4 million gallons of fuel annually, supplying 125 transit buses operating in the city of Long Beach, Calif.

The Garden City Transit Authority in New York has signed an operations and maintenance agreement with Clean Energy for its transit fleet. The deal is expected to use an anticipated 3.3 million gallons of fuel for 237 transit buses.

The City of Bakersfield, Calif., has signed an agreement with Clean Energy to provide services, parts and materials for the city’s two fueling stations. Clean Energy will also fuel the city’s 79 waste collection vehicles with an anticipated 750,000 gallons of liquefied natural gas (LNG).

Suburban Disposal in New York has inked a maintenance agreement with Clean Energy for a station that provides 549,000 gallons of fuel to power its fleet of 61 waste collection trucks.

City of Scottsdale, Ariz. has signed an agreement with Clean Energy to maintain its station. The station is anticipated to provide 455,000 gallons of fuel for approximately 103 vehicles which comprise of fleet vehicles, waste collection trucks and forklifts.

Orange County Public Works in Calif. has signed a contract with Clean Energy to provide station services as well as fuel. The station will dispense an estimated 300,000 gallons of fuel annually which will power refuse trucks, street sweepers, sewer cleaners and other third-party refuse vehicles.

The City of Tacoma, Wash. has signed an operations and maintenance agreement with Clean Energy for a station that is expected to dispense 450,000 gallons of fuel annually to operate 50 of its refuse trucks.

Waste Resources in Gardena, Calif. has signed a repairs and maintenance deal with Clean Energy to provide 448,000 gallons of fuel to 64 of its waste collection vehicles.

The Port of Seattle has inked a deal with Clean Energy for its airport transport fleet. Clean Energy will provide approximately 400,000 gallons of clean fuel for 45 of its airport shuttle buses.

Clean Energy has extended its relationship with Atlantic County Utilities Authority in New Jersey to operate and maintain a station that will provide approximately 481,000 gallons of fuel for the city’s 100 waste collection trucks.

Clean Energy has inked a deal with the District of Columbia Public Works to provide fuel and maintenance for 20 government vehicles and waste collection trucks in the city. The contract is expected to provide 15,000 gallons of fuel to DC Public Works annually.

Fort Smith Transit Authority in Arkansas has signed a contract with Clean Energy to provide maintenance services as well as fuel. The deal highlights the City of Fort Smith’s commitment to expanding its CNG fleet to decrease their emission and reach their sustainability goals. The agreement is for an estimated 200,160 gallons to power 16 transit vehicles.

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 numbers and timing of vehicles expected to be deployed, fueled, maintained, or financed; the characteristics and performance of natural gas engines and trucks; the potential development of the 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240619929393/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 recent agreements has Clean Energy (CLNE) secured?

Clean Energy has secured new agreements with several municipalities to provide renewable natural gas (RNG) and station maintenance services.

How much RNG will Clean Energy provide to Long Beach Transit?

Clean Energy will supply Long Beach Transit with an estimated 1.4 million gallons of RNG annually.

Which city will receive 500,000 gallons of RNG annually from Clean Energy?

The City of Fort Collins will receive 500,000 gallons of RNG annually from Clean Energy.

What is the scope of Clean Energy's deal with Garden City Transit Authority?

Clean Energy's deal with Garden City Transit Authority includes providing 3.3 million gallons of RNG annually for its transit buses.

How is Clean Energy (CLNE) contributing to Beverly Hills' waste vehicle operations?

Clean Energy will provide 119,000 gallons of RNG annually and maintenance services for Beverly Hills' waste vehicles.