Biomethane (“Redeem”) a critical differentiator
Clean Energy Fuels Corp. continues to roll out its America’s Natural Gas Highway infrastructure with the opening of stations at Amarillo, Texas, and Oklahoma City, Okla., to serve global logistics company UPS’s growing heavy-duty LNG truck fleet. Truck fueling agreements, new natural gas powered fleet deployments and additional funding for infrastructure development across Clean Energy’s nationwide network are all positive signs for an alternative fuel that is claiming new territory across the United States. Additionally, the company’s third biomethane plant is now operational.
UPS has deployed six heavy-duty LNG trucks which are fueling at Clean Energy’s newly-opened Oklahoma City, Okla., station; an additional four trucks are expected to begin fueling at this station within weeks. These tractors are forecasted to consume approximately 300,000 DGEs of LNG per year which represents a greenhouse gas reduction of approximately 518 metric tons per year. Clean Energy’s Amarillo, Texas, station has also opened and is fueling 10 LNG trucks under its previously-announced bulk fueling agreement with UPS.
Carrier EJ Madison has deployed a fleet of 20 long haul Dual-fuel LNG trucks on routes spanning the breadth of Clean Energy’s America’s Natural Gas Highway. Fueling from California, Arizona, Texas and Florida stations, this growing fleet showcases the strength of Clean Energy’s nationwide network. The fleet currently has traveled over five-hundred-thousand miles.
EJ Madison intends to expand this fleet with an additional 30 dual-fuel LNG/diesel trucks in the coming months. Texas-based Clean Fuel Technologies, LLC, is handling all conversions. Once fully deployed, this fleet is forecasted to consume approximately 336,000 DGEs of LNG per year, the approximate greenhouse gas reduction of 581 metric tons per year.
Clean Energy LNG has dramatically reduced EJ Madison’s fleet maintenance costs by reducing carbon output and therefore reducing problems with diesel particulate systems that currently plague the industry.
“The initial twenty LNG dual-fuel conversions have proven to be a solid business move which is why we’re more than doubling the size of this fleet to continue to provide superior service to our customers at a competitive cost,” said John Warren, president of EJ Madison. “I believe the future of long-haul trucking is here, it’s cleaner and it’s promising.”
Long-time Clean Energy customer Dillon Transport has deployed eight additional heavy-duty CNG trucks which will fuel at Clean Energy’s Fair Oaks Dairy station in Indiana. The fleet will be hauling raw materials for Owens Corning and is forecasted to consume approximately 240,000 DGEs of CNG per year, the equivalent of reducing greenhouse gas emissions by approximately 556 metric tons per year.
The Pennsylvania Department of Community & Economic Development has awarded Clean Energy approximately $2.5 million to offset the cost of constructing two LCNG stations to fuel light-, medium-, and heavy-duty vehicles with CNG or LNG. The stations will be located in Pittston Township, Pa., and Pottsville Township, Pa., to serve the heavily-trafficked I-81 and I-476 highways. Both stations are projected to open by the end of 2014.
Additionally, 10 Clean Energy customers were among the 25 companies awarded approximately $7.7 million in Act 13 funds by the state of Pennsylvania for 129 heavy-duty natural gas vehicle conversions.
“Constructing the Pittston and Pottsville LCNG stations is a crucial step toward expanding the LNG and CNG market in Pennsylvania, spurring economic development and enhancing the Commonwealth’s energy independence and security,” James Harger, chief marketing officer of Clean Energy, said.
In addition to these agreements, Clean Energy has secured contracts with three more companies to fuel 24 CNG trucks in markets across the United States.
Natural gas fuel costs up to $1.50 less per gallon than gasoline or diesel, depending on local market conditions. The use of natural gas fuel not only reduces operating costs for vehicles, but also reduces greenhouse gas emissions up to 30% in light-duty vehicles and 23% in medium to heavy-duty vehicles. In addition, nearly all natural gas consumed in North America is produced domestically.
Clean Energy Commenced Production and Sales of Redeem at its Memphis Biomethane Plant
The third Clean Energy-owned production facility of Redeem biomethane fuel, the cleanest fuel commercially available which can fuel everything from a taxi to a heavy-duty truck, commenced operation and completed its first sale in March 2014. The facility is located at the Republic Services North Shelby landfill outside of Memphis.
The facility is forecasted to achieve an annual production rate of approximately 3.7 million GGEs of Redeem once fully operational. Redeem can be made available to Clean Energy customers nationwide, is up to 90 percent cleaner than gasoline and diesel and is 100 percent renewable.
“The success of our North Shelby project will enable more of America’s fleets to fuel with the cleanest and cheapest alternative fuel commercially-available today,” said Harrison Clay, president of Clean Energy subsidiary Clean Energy Renewable Fuels. “We believe this expanded capacity will enable our team to build on last year’s successful delivery of 14 million GGEs of Redeem.”
President and CEO Andrew Littlefair’s Perspective
“Opening stations and adding incremental volume to existing stations are top priorities for our team. UPS continues to confirm its leadership in adopting cleaner, alternative fuels. New entrants such as EJ Madison are vital in the overall adoption of natural gas because of their coast-to-coast routes and nationwide network. Clean Energy’s years of experience and leadership position in established markets like refuse and transit are positioning us extremely well to capitalize on the young heavy-duty truck market. This is particularly true as we add capacity to our biomethane fuel product, Redeem. Renewable and cleaner than gasoline and diesel, Redeem is a critical differentiator for Clean Energy and we’re excited to continue to expand the availability of this fuel to our customers.”
(Source: Clean Energy Fuels)