Daily GPI / NGI All News Access

Clean Energy Signs Big Deals in Transit, Trucking, Manufacturing

Newport Beach, CA-based Clean Energy Fuels Corp. scored a hat trick Tuesday, signing three major deals in transit, trucking and manufacturing, the last of which was characterized by the alternative fuel provider as a first of its kind.

The triple-play is another indication that "perceived barriers and limitations of natural gas continue to be eliminated," according to Clean Energy CEO Andrew Littlefair, who said the presence of new users indicates both economic and environmental advantages for natural gas.

Clean Energy and NG Advantage have agreed to partner in a 10-year deal to construct a facility for producing compressed natural gas (CNG) in central New Hampshire to bring natural gas to various manufacturing and other energy-intensive customers not connected to a gas pipeline throughout New England and eastern New York state.

Operated by Clean Energy, the New England facility is intended to provide a minimum of 10 million gasoline-gallons-equivalent of CNG annually, which represents more than twice the CNG volume supplied by Clean Energy's current highest volume CNG station.

In the transit sector, Clean Energy signed a 10-year deal with the Los Angeles County Metropolitan Transportation Authority (LA Metro) making it the exclusive CNG fuel partner for what Clean Energy and LA Metro call the nation's largest clean air transit fleet.

The LA Metro board approved a 10-year CNG station operation and maintenance contract with Clean Energy for four CNG bus fueling stations. Under the new deal, Clean Energy will continue to operate and maintain all of the transit agency's 10 CNG bus fueling stations as well as an 11th station currently under construction.

Overall, Clean Energy expects to compress 36 million gallons of natural gas annually under the deal, including 15 million gallons annually for the next 10 years at the four stations named in the new contract, and another 21 million gallons annually for LA Metro's other CNG bus fueling stations. LA Metro has converted its entire fleet of 2,000 buses to CNG, allowing it to operate 80% cleaner.

For trucking, Clean Energy's third deal is the largest single order and deployment of medium-duty CNG trucks for service delivery in the United States, according to the company. Signed with Fox Transportation, the deal calls for fueling and deployment of more than 100 CNG trucks over the next few months, using Clean Energy's existing fueling stations throughout Southern California.

Fox, a hospital delivery service provider throughout California, is expected to consume 600,000 diesel-gallon-equivalent of natural gas annually in making about 900,000 deliveries and chalking up more than 5 million miles, Clean Energy said.

 "With natural gas fueling now a reality, we believe providing this cheaper and cleaner fuel option is the right business decision and will strengthen our long-term relationships with customers," said CEO Mike Fox.

Recent Articles by NGI Staff Reports

Comments powered by Disqus