Clean Energy Fuels Corp. (CLNE:NASDAQ), which supplies compressed, liquefied and renewable natural gas for light, medium and heavy-duty vehicles, today announced that "the Los Angeles County Metropolitan Transportation Authority (Metro) has signed a new agreement for an estimated 47.5 million gallons of its renewable natural gas (RNG) to fuel the nation's largest transit bus fleet."
The company noted that the supply agreement marks the completion of Metro's five-year goal to transition over its diesel fleet to cleaner, low-carbon fuel. Metro will now be operating a fleet of 2,400 buses running on sustainable RNG derived from organic waste.
L.A. County Metro's Chief Sustainability Officer Cris Liban stated, "Metro is committed to ensuring a seamless path towards a carbon neutral future...Our use of RNG alongside our ultra-low NOx engines on our existing CNG fleet provides the most cost-effective, equitable, and clean air strategy as we continue to transition to a 100% zero-emissions bus fleet by 2030 and a net zero-emissions agency by 2050."
The firm noted that this agreement with Metro awarded it the contract for three fueling depots for an initial period of five years along with a three year extension option. Clean Energy Fuels mentioned that at present it already ships RNG to five additional Metro fueling depots under a prior service agreement.
Clean Energy stated that its RNG is produced by capturing biogenic methane produced from the waste decomposition process at dairy farms, wastewater treatment plants and landfills. The company advised that RNG not only reduces climate-harming greenhouse gas emissions, but in some cases depending on the source, it can cut emissions by up to 300 percent making it a truly negative carbon fuel.
Nate Jensen, S.V.P of Clean Energy Renewables, commented, "Metro continues to lead public transportation as one of the cleanest fleets in the U.S., with nearly 22 million gallons of RNG delivered to Metro since 2017...With this additional commitment to fuel with RNG, Metro is accelerating its path to net zero carbon emissions through RNG and other alternative fuels."
Clean Energy Fuels Corp. is based in Newport Beach, Calif., and is a provider of clean fuel for the commercial transportation market. The company's renewable natural gas (RNG) is derived from captured biogenic methane which is produced from decomposing organic waste that is then used to create RNG products for powering commercial vehicle fleets, airport shuttles, city buses and waste and heavy-duty trucks. The firm advised that depending upon the source of the RNG, it can help reduce greenhouse gasses by 70% to 300% compared to diesel and other fuels. The firm has a network of around 540 fueling stations throughout the U.S. and Canada and can deliver Redeem through both compressed natural gas (CNG) and liquefied natural gas (LNG). The company additionally owns natural gas liquefication facilities in both California and Texas and transports bulk CNG and LNG to non-transportation customers around the U.S.
Clean Energy Fuels started the day with a market cap of around $2.6 billion with approximately 198.3 million shares outstanding and a short interest of about 4.1%. CLNE shares opened nearly 30% higher today at $16.855 (+$3.885, +29.95%) over Friday's $12.97 closing price and reached a new 52-week high price this morning of $18.42. The stock has traded today between $16.00 and $18.42 per share and is currently trading at $18.36 (+$5.39, +41.56%).
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