Clean Energy Signs Major Natural Gas Supply Contracts


Clean Energy Dispenser at LA MetroClean Energy Fuels Corp. has released an update to its “Road to Natural Gas” report with select deal announcements of its growing portfolio of natural gas fuel customers. Referred to therein, the Californian-based natural gas supplier has signed major provision contracts:

■ 10-year exclusive supply to LA Metro — USA’s largest clean air fleet
■ Fueling agreement with Fox Transportation – Clean Energy’s largest single order

Jointly, the contracts are expected to reduce greenhouse gases by almost 78 thousand metric tons per year.

LA Metro

Los Angeles (LA) Metro Board has approved a 10-year CNG station operation and maintenance contract with Clean Energy for 4 of LA Metro’s CNG bus fueling stations. With this award, Clean Energy will continue to operate and maintain all of the Agency’s 10 CNG bus fueling stations as well as an 11th station currently under construction by Clean Energy.

Clean Energy anticipates compressing approximately 15 million gallons of natural gas annually for the next 10 years to serve the 4 stations named in this contract. Additionally, Clean Energy expects to continue to compress approximately 21 million gallons of CNG annually for LA Metro’s additional stations.

“Since completing our fleet’s transition to natural gas, LA Metro’s fleet of over 2,000 buses operates more than 80 percent cleaner. Clean Energy has been our trusted partner to accomplish this and lead the nation in clean and reliable transit. We’re happy to continue this relationship as we continue to serve the people of Los Angeles County, ” said Arthur T. Leahy, CEO, LA Metro.

“LA Metro has helped the people of Los Angeles breathe—and ride—easier with the largest natural gas fleet in the country. We look forward to continuing to serve the LA Metro and the millions of riders who depend on it,” said Derek Turbide, Clean Energy regional vice president.

LA Metro is expected to use approximately 36 million gasoline-gallons-equivalent of CNG per year which reduces greenhouse gases by 75,852 metric tons per year, the equivalent of taking 15,660 cars off the road per year.

Fox Transportation

Fix Transportation goes for CNG for medium-duty fleet.Fox Transportation has signed a fueling agreement and plans deployment of over 100 natural gas trucks over the next several months which will fuel at Clean Energy stations throughout Southern California. Once fully-deployed, the fleet is expected to consume approximately 600,000 diesel-gallons-equivalent of natural gas fuel per year.

The fleet is anticipated to make approximately 900,000 deliveries annually to hospitals thorough California, traveling over 5 million miles per year.

“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,” explained Mike Fox, CEO, Fox Transportation.

“Fox Transportation has proven itself to be an industry-leader in transportation logistics. Clean Energy is privileged to help Mike and his team continue to exceed the needs of their customers with the deployment of the largest medium-duty CNG truck fleet in the nation,” replied Chad Lindholm, Clean Energy regional vice president.

Fox Transportation is expected to use approximately 600,000 gasoline-gallons-equivalent of CNG per year which reduces greenhouse gases by 1,936 metric tons per year, the equivalent of taking 399 cars off the road per year.

Beyond the Pipeline Supply Contract

Demonstrating the expanding options for industries associated with natural gas, Clean Energy Fuels has also signed a ‘first of its kind’ deal with Milton, Vermont based NG Advantage LLC: a 10-year deal to construct a new natural gas compression facility in central New Hampshire to expand reach to manufacturing and other energy-intensive customers not on a natural gas pipeline throughout New England and Eastern New York.

Operated by Clean Energy, the facility is intended to provide a minimum of 10-million gasoline-gallons-equivalent of CNG per year. This potentially represents more than double the CNG fuel volume supplied by Clean Energy’s highest-volume CNG station.

(Source: Clean Energy Fuels)

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