Clean Energy Adds CNG Stations in Atlanta and Harvests Biomethane in Texas

| USA, Seal Beach CA

Clean Energy's McCommas Bluff Landfill facility will become a major producer of biomethane for transport in the US.

Clean Energy Fuels Corp., a company founded by Boone Pickens for the provision of natural gas fuel for transportation across North America, continues to grow its natural gas fuelling operations by entering into a new supply agreement with PS Energy Group in Atlanta, Georgia and a bond issuance by Dallas Clean Energy McCommas Bluff, LLC, to enhance biomethane production from landfill in Dallas, Texas.

CNG Fuelling Outlets for Atlanta

Clean Energy has signed a 15-year agreement to develop and operate compressed natural gas (CNG) facilities at privately-owned PS Energy Group, Inc.’s metro Atlanta fueling stations or Unattended Fuel Outlets (UFO). Clean Energy will increase dispensing capacity of CNG at the Whitehall Street site in downtown Atlanta and add CNG facilities at the East Point, Lithonia and Tucker, Ga. locations. By fall 2011, fleets and individuals with CNG vehicles will be able to fill up at any time at any of these computerized fueling stations.

“By expanding the availability of compressed natural gas at PS Energy Group’s fueling stations, we encourage individuals and fleets to reduce their petroleum consumption and impact on the environment by switching to cleaner, alternative fuels,” said Livia Whisenhunt, president, CEO and founder of PS Energy Group.

This project is part of the $39.5 million Clean Cities Atlanta Petroleum Reduction Program, a local public/private partnership co-funded by the U.S. Department of Energy’s National Clean Cities Initiative to support clean fuels, vehicles and infrastructure development to improve fuel economy and air quality in metro Atlanta. Clean Cities supports local decisions to reduce petroleum consumption in the transportation sector through the use of alternative fuels, advanced technology vehicles and fuel economy measures.

“Clean Energy is working with PS Energy Group to respond to the growing demand for CNG by fleets powered by clean-burning, natural gas,” said James Harger, chief marketing officer of Clean Energy. Construction is projected to begin in second quarter 2011 at PS Energy Group’s fueling stations.

Bond Issuance for Increased Biomethane Production from Landfill

Dallas Clean Energy McCommas Bluff, LLC, a subsidiary owned 70% by Clean Energy Fuels Corp., has arranged for a $40.2 million tax-exempt bond issuance led by Senior Managing Underwriter FirstSouthwest Company. The McCommas Bluff landfill — the third largest landfill gas operation in the United States, opened in 1975 and is scheduled to close in 2042. It is estimated that pipeline quality biomethane gas will continue to be produced for approximately 30 years after the landfill closes.

The plant is currently capable of processing 9.4 million cubic feet a day of landfill gas into approximately 36,000 gasoline gallon equivalents of pipeline quality biomethane. Landfill gas is collected by over 300 vertical extraction wells. Dallas Clean Energy plans to increase this capacity to approximately 14.9 million cubic feet a day and make further improvements that should enable the production of approximately 60,000 gasoline gallon equivalents a day of pipeline quality biomethane.

The bond proceeds will primarily be used to finance further improvements and expansion of the landfill gas processing facility owned by Dallas Clean Energy at the McCommas Bluff landfill outside of Dallas Texas.

“This financing provides funds for the highly successful biomethane facility owned and operated by our Dallas Clean Energy subsidiary and will enable the plant to increase production,” said Andrew J. Littlefair, Clean Energy President and CEO. “McCommas Bluff is the first facility in our new Renewable Fuels initiative and now produces more than nine million gasoline gallon equivalents of renewable biomethane annually.”

While natural gas is 23% cleaner in carbon emissions than diesel in heavy-duty vehicles — and far cleaner in NOX and PM emissions — biomethane enables an 88% reduction in carbon emissions when displacing diesel or gasoline.

The bonds will be repaid from the revenue generated by Dallas Clean Energy McCommas Bluff, LLC (“Dallas Clean Energy”) from the sale of renewable natural gas (or biomethane).

This article primarily compiled using information from a Clean Energy press releases.

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