NEWPORT BEACH, Calif. (April 1, 2014) — Clean Energy Fuels Corp. (NASDAQ: CLNE) today announced fueling has begun at its Amarillo, Texas, and Oklahoma City, Okla., America’s Natural Gas Highway stations to serve UPS’ growing heavy-duty LNG truck fleet. Additional truck fueling agreements were also announced for fleets fueling across Clean Energy’s nationwide network from Los Angeles, Calif., to Jacksonville, Fla. Clean Energy and its customers were also awarded grant funds by the state of Pennsylvania for LCNG infrastructure development and heavy-duty natural gas vehicle conversions. Clean Energy also began production and sales of its Redeem biomethane fuel at its Memphis, Tenn., production facility.
Clean Energy Opens Oklahoma City, Okla., and Amarillo, Texas, America’s Natural Gas Highway Stations to Support UPS’ Growing Fleet of LNG Trucks
UPS has deployed six heavy-duty LNG trucks which are fueling at Clean Energy’s newly-opened Oklahoma City, Okla., station; an additional four trucks are expected to begin fueling at this station within weeks. These tractors are forecasted to consume approximately 300,000 DGEs of LNG per year which represents a greenhouse gas reduction of approximately 518 metric tons per year.
Clean Energy’s Amarillo, Texas, station has also opened and is fueling 10 LNG trucks under its previously-announced bulk fueling agreement with UPS.
Carrier EJ Madison Deployed a Fleet of 20 Long Haul Dual-fuel LNG Trucks on Routes Spanning the Breadth of Clean Energy’s America’s Natural Gas Highway
Fueling at Clean Energy’s Los Angeles, Calif., Phoenix, Ariz., Houston, Texas, Dallas, Texas, San Antonio, Texas, and Jacksonville, Fla., stations, this growing fleet showcases the strength of Clean Energy’s nationwide network. The fleet currently has traveled over five-hundred-thousand miles.
EJ Madison intends to expand this fleet with an additional 30 dual-fuel LNG/diesel trucks in the coming months. El Paso, Texas-based Clean Fuel Technologies, LLC, is handling all conversions.
Once fully deployed, this fleet is forecasted to consume approximately 336,000 DGEs of LNG per year, the approximate greenhouse gas reduction of 581 metric tons per year.
Clean Energy LNG has dramatically reduced EJ Madison’s fleet maintenance costs by reducing carbon output and therefore reducing problems with diesel particulate systems that currently plague the industry.
“The initial twenty LNG dual-fuel conversions have proven to be a solid business move which is why we’re more than doubling the size of this fleet to continue to provide superior service to our customers at a competitive cost,” said John Warren, president of EJ Madison. “I be.lieve the future of long-haul trucking is here, it’s cleaner and it’s promising."
Dillon Transport Deploys Eight Additional CNG Trucks; Signs Fueling Agreement with Clean Energy
Long-time Clean Energy customer Dillon Transport has deployed eight additional heavy-duty CNG trucks which will fuel at Clean Energy’s Fair Oaks Dairy station in Indiana.
The fleet will be hauling raw materials for Owens Corning and is forecasted to consume approximately 240,000 DGEs of CNG per year, the equivalent of reducing greenhouse gas emissions by approximately 556 metric tons per year.
"Clean Energy has been a trusted fuel provider for years,” said Jeff Dillon, president, Dillon Transport. “As our natural gas fueling needs have expanded, Clean Energy has grown with us to include station design, construction and maintenance, and continues to fuel our growing fleet of heavy-duty natural gas trucks.”
Clean Energy Awarded $2.5 Million to Construct Two Public-access LCNG Stations in Eastern Pennsylvania
The stations will be located in Pittston Township, Pa., and Pottsville Township, Pa., to serve the heavily-trafficked I-81 and I-476 highways. Both stations are projected to open by the end of 2014.
Additionally, 10 Clean Energy customers were among the 25 companies awarded approximately $7.7 million in Act 13 funds by the state of Pennsylvania for 129 heavy-duty natural gas vehicle conversions.
“Constructing the Pittston and Pottsville LCNG stations is a crucial step toward expanding the LNG and CNG market in Pennsylvania, spurring economic development and enhancing the Commonwealth’s energy independence and security,” James Harger, chief marketing officer of Clean Energy, said. “We applaud Governor Corbett, and the Pennsylvania Department of Community & Economic Development for supporting private enterprise in the development of a natural gas infrastructure.”
In addition to these agreements, Clean Energy has secured contracts with three more companies to fuel 24 CNG trucks in markets across the United States.
Natural gas fuel costs up to $1.50 less per gallon than gasoline or diesel, depending on local market conditions. The use of natural gas fuel not only reduces operating costs for vehicles, but also reduces greenhouse gas emissions up to 30% in light-duty vehicles and 23% in medium to heavy-duty vehicles. In addition, nearly all natural gas consumed in North America is produced domestically.
Clean Energy Commenced Production and Sales of Redeem at its Memphis Biomethane Plant
The third Clean Energy-owned production facility of Redeem biomethane fuel, the cleanest fuel commercially available which can fuel everything from a taxi to a heavy-duty truck, commenced operation and completed its first sale in March 2014. The facility is located at the Republic Services North Shelby landfill outside of Memphis.
The facility is forecasted to achieve an annual production rate of approximately 3.7 million GGEs of Redeem once fully operational. Redeem can be made available to Clean Energy customers nationwide, is up to 90 percent cleaner than gasoline and diesel and is 100 percent renewable.
“The success of our North Shelby project will enable more of America’s fleets to fuel with the cleanest and cheapest alternative fuel commercially-available today,” said Harrison Clay, president of Clean Energy subsidiary Clean Energy Renewable Fuels. “We believe this expanded capacity will enable our team to build on last year’s successful delivery of 14 million GGEs of Redeem.”
A VIEW FROM THE TOP:
An insider’s look at what this means for the Alternative Fuel Industry from Clean Energy’s President and CEO,
Opening stations and adding incremental volume to existing stations as shown by today’s announcements are top priorities for our team. UPS continues to confirm its leadership in adopting cleaner, alternative fuels. New entrants such as EJ Madison are vital in the overall adoption of natural gas because of their coast-to-coast routes and nationwide network. Clean Energy’s years of experience and leadership position in established markets like refuse and transit are positioning us extremely well to capitalize on the young heavy-duty truck market. This is particularly true as we add capacity to our biomethane fuel product, Redeem. Renewable and cleaner than gasoline and diesel, Redeem is a critical differentiator for Clean Energy and we’re excited to continue to expand the availability of this fuel to our customers.
About Clean Energy Fuels Corp.
Clean Energy Fuels Corp. (Nasdaq: CLNE) is the largest provider of natural gas fuel for transportation in North America. We build and operate compressed natural gas (CNG) and liquefied natural gas (LNG) fueling stations; manufacture CNG and LNG equipment and technologies for ourselves and other companies; develop renewable natural gas (RNG) production facilities; and deliver more CNG, LNG and Redeem RNG fuel than any other company in the U.S. For more information, visit www.cleanenergyfuels.com.
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 number of trucks expected to be deployed and the amount of natural gas fuel expected to be consumed by each of UPS, EJ Madison and Dillon Transport, respectively, the projected completion date for the Pittston and Pottsville stations, the benefits to Pennsylvania of the Pittston and Pottsville stations, Redeem production by Clean Energy’s Memphis plant, and the benefits of natural gas and Redeem relative to gasoline and diesel. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including without limitation the price of natural gas relative to gasoline and diesel, the cost and operating experience associated with natural gas trucks, permitting and other construction related delays, and operational and other difficulties producing Redeem. The forward-looking statements made herein speak only as of the date of this press release and, unless otherwise required by law, the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Additionally, the reports and other documents the Company 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.