Clean Energy Fuels Corp. and its largest shareholder, Total SE, on Thursday formalized a 50-50 joint venture (JV) to develop U.S. renewable natural gas (RNG) production facilities and downstream fueling infrastructure.
The initial commitment is $100 million, which may increase to $400 million as development opportunities progress.
“The finalization of this JV with Total, which was originally announced in December…demonstrates the commitment both companies have to the growth of RNG, a fuel that can tackle serious climate issues today,” said Clean Energy CEO Andrew J. Littlefair.
“The demand by customers for RNG continues to accelerate, highlighted by our recent announcement that the largest bus fleet in the U.S.,” the Los Angeles County Metropolitan Transportation Authority, converted its entire fleet to RNG.
Total is Clean Energy’s largest shareholder with a 25% stake. The Paris-based supermajor agreed to provide credit support for the Newport Beach, CA-based firm to develop the RNG value chain, including $45 million for contracted fueling infrastructure.
Many large oil and gas producers are involved in similar projects.
For example, BP plc’s BP Products North America Inc. is working with Clean Energy to develop, own and operate RNG facilities at dairies and other agriculture facilities.Chevron Corp. has a few deals underway, too, including a partnership with Brightmark LLC to produce and market biomethane at sites across the country. Chevron also has a JV with California Bioenergy and an Adopt-a-Port initiative with Clean Energy.
© 2023 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |