Clean Energy Fuels Corp. (CLNE) is growing its already outsized role as the largest provider of renewable natural gas (RNG) with progress on projects that it said would add more than 110 MMcf of production capacity and a bevy of contracts with the transportation industry.
The California-based firm reported that construction of an RNG digester at the Del Rio Dairy in Friona, TX, is near completion, with startup expected by the end of the year. Another digester at the Millenkamp Dairy in Idaho is slated to reach startup early next year. Both projects could add more than 60 MMcf in RNG capacity to CLNE’s distribution network.
“We continue to make great progress on our RNG supply goals that we stated at the beginning of the year,” Senior Vice President Clay Corbus, head of renewable fuels, said. “Dairy owners are looking for a partner that can give them a known market as they develop their RNG supply, and no other company can do that like Clean Energy.”
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The company previously set a fiscal year 2022 goal of 250 MMcf of RNG under contract and the completion of four dairy projects by the end of the year. During a second quarter conference call, CEO Andrew Littlefair said CLNE was on track to beat both goals.
Around 70 MMcf of supply from projects at three dairies in South Dakota and Iowa is also “nearing completion,” according to the company, with more updates expected later in the year. CLNE recently broke ground on two additional projects in Minnesota and South Dakota, but no completion or capacity details have been disclosed.
Projects like the ones CLNE is developing across the Midwest and Texas typically capture the methane released from waste at dairy farms and process it into a viable fuel.
Several of CLNE’s South Dakota and Iowa dairy projects were executed as a part of its partnership with BP plc, which has been its RNG footprint in the United States. CLNE is also developing facilities with TotalEnergies.
CLNE’s Chad Lindholm, senior vice president for sales, said the company has also seen increased interest in RNG and compressed natural gas (CNG) services across all transportation sectors as it adds more supply.
“As fleet operators of large vehicles look at the entire alternative fuel landscape, RNG continues to rise to the top as they consider carbon reduction, ease in fueling, reliability and cost,” Lindholm said.
CLNE company added several new contracts with both logistics firms and municipalities looking for long-term supplies of low-carbon fuels. One of the largest was a 12 MMcf supply deal with California Transportation Dynamics LLC. as it seeks to transition 40 diesel trucks to RNG.
It also landed a new Canadian client with a 15 MMcf contract with GFL Environmental Inc. in Alberta, Canada. CLNE recently expanded its Canadian footprint with a deal alongside an alternative fuel unit of Enbridge Inc., setting up a fourth CNG station in Ontario.
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