While reiterating its commitment to market renewable natural gas (RNG) for transportation, California-based Clean Energy Fuels Corp. has sold its interest in a Dallas-based biomethane production facility under development to the minority interest owner for $40.6 million.

Interest in the McCommas Bluff biomethane production facility, set to open this year, is being sold to Cambrian Energy. McCommas would remain a Clean Energy RNG supplier.

“Clean Energy will continue to have the right to market and sell biomethane produced at the facility under its Redeem RNG vehicle fuel brand,” said a spokesperson, noting that Cambrian has been a partner since Clean Energy bought into the McCommas project in 2008.

California regulators last year widened the alternative transportation fuel competition by approving rules to encourage the use of biomethane and RNG as a transportation fuel (see Daily GPI, Jan. 23, 2014).

Redeem RNG is currently available throughout Clean Energy’s public natural gas fueling stations in California. The fuel provider touts it as the only fuel commercially available today at a discount to diesel prices that achieves a 90% reduction in greenhouse gas emissions and can meet 100% of the fueling requirements of an 18-wheel truck.

The U.S. Environmental Protection Agency recently reclassified biomethane as a cellulosic biofuel under the federal renewable fuel standard. This further underscores the viability of biomethane as a renewable fuel, Clean Energy’s spokesperson said.

Separately, the company has started production at its biomethane facility in North Shelby, TN, and has added 12 third-party sources to its RNG supply portfolio.

In addition to the $40.6 million from Cambrian for its majority share of McCommas Bluff, Clean Energy is also in line to get about $3 million in additional compensation pending further performance tests of the facility when it is completed.

“Buying the McCommas biomethane facility allowed Clean Energy to gain a valuable foothold in the RNG business,” said Harrison Clay, president of Clean Energy Renewables. “We have successfully leveraged our success at McCommas into a greater knowledge of the entire supply chain and established a leadership position in the RNG fuel market.”