Clean Energy Fuels Corp. and its largest shareholder, Total S.E., announced a memorandum of understanding to create a 50/50 joint venture to develop carbon-negative renewable natural gas (RNG) production facilities in the United States, as well as credit support to build additional downstream RNG fueling infrastructure. Total will provide $50 million and Clean Energy $30 million for the proposed joint venture and Total will be providing credit support of $65 million to support Clean Energy development in the RNG value chain, including $45 million for contracted RNG fueling infrastructure.
The companies have already partnered to expand the use of RNG in the heavy-duty truck market with its Zero Now program, which allows fleets to purchase natural gas trucks for the same price as diesel trucks.
“We are very fortunate to have a partner in Total that is so supportive on a number of levels,” said Andrew J. Littlefair, CEO and president of Clean Energy. “Both our companies have recognized the enormous opportunity that a carbon-negative fuel can play in our ambitious efforts to combat climate change. This new agreement will allow Clean Energy to increase the flow of low-CI RNG as the demand expands, as well as the capital to build new fueling stations for additional contracted fleets.”
Furthermore, Clean Energy will work with BP Products North America Inc, a subsidiary of BP p.l.c. to develop, own and operate new RNG facilities at dairies and other agriculture facilities that will produce one of the cleanest fuels in the world.
“Carbon-negative RNG is being used today by thousands of vehicles with more and more fleets requesting it every week,” said Littlefair. “Taking this next step allows us to expand the availability of the fuel while providing dairy owners with a way to make a significant impact on the environment and create an additional revenue stream.”