Clean
Energy Fuels Corp. (NASDAQ: CLNE)
today reported it delivered for the first time over 50 million
compressed natural gas (CNG) gallons in one quarter. The company plans
to grow its CNG sales further with a strategic move to expand its CNG
market to large industrial and institutional energy users beyond the
nation’s natural gas pipeline by acquiring a controlling interest in NG
Advantage LLC, a pioneer in the natural gas “virtual pipeline”
delivery system. The NG Advantage investment will primarily be used to
fund capital expenditures for expansion and growth in the business.
Clean Energy will also purchase NG Advantage’s Milton, Vt., compression
station which is on track to supply nearly 16 million
gasoline-gallon-equivalents (GGEs) of CNG annually. This station will
immediately become Clean Energy’s highest-volume station in its
nationwide network of almost 500 stations.
“The NG Advantage purchase is a perfect example of Clean Energy’s focus
on aggressively pursuing new market opportunities to help rapidly grow
our CNG gas sales,” said Andrew
J. Littlefair, President and CEO of Clean Energy. “Our record growth
in overall delivered gallons combined with the new market reach of NG
Advantage positions Clean Energy to keep growing as our trucking
business develops.”
Littlefair added, “We immediately recognized the potential in NG
Advantage as a powerful partnership combining Clean Energy’s leadership
in natural gas fueling and compressor technology with NG Advantage’s
market presence and pioneering delivery system. NG Advantage’s
groundbreaking ‘virtual pipeline’ currently brings natural gas to new
markets in the Northeast with the potential of expanding to other areas
in North America that do not have direct access to natural gas
pipelines.”
NG Advantage’s founder and president, Tom Evslin, will remain with the
company as CEO and its second largest investor, and will continue to
oversee operations from its Milton offices. Founded less than four years
ago, the company and the acceptance of the “virtual pipeline” have grown
rapidly. As a result of this partnership, Clean Energy expects a
significant increase in delivered CNG volume day one and forecasts rapid
growth as NG Advantage expands with Clean Energy’s existing station
network and new stations built with compressors from its IMW subsidiary.
“Rising and unpredictable fuel costs have made it exceptionally
difficult for manufacturers and facilities without access to the
nation’s natural gas pipeline network to compete in an increasingly
competitive marketplace,” said Evslin. “NG Advantage is forging a new
industry which meets this need, and the partnership with Clean Energy
ensures our customers will be working with the most experienced natural
gas fuel provider at every step in the process. Clean Energy had the
foresight to establish the country’s largest network of compression
stations. Although they were originally built for vehicle fueling, they
compress gas to exactly the pressure we need to fill our trailers and we
expect many will be suitable for co-location. We look forward to using
this network to rapidly bring the benefits of natural gas to enterprises
beyond the pipeline nationwide.”
Founded in 2011, NG Advantage has created a new industry transporting
CNG in high-capacity trailers to large industrial and institutional
energy users such as hospitals, food processors, manufacturers and paper
mills. The CNG is transported in its fleet of tanker trucks, offloaded
and used to replace fuel-oil and propane which can save customers up to
40 percent on fuel costs while reducing greenhouse gas emissions by up
to 26 percent. Companies burning coal can reduce their CO2 emissions by
50% when converting to natural gas.
NG Advantage has exclusive long-term contracts with more than 20
energy-intensive organizations served by its Milton, Vt., compression
facility and the newly-opened Pembroke, N.H., facility. The Pembroke
facility utilizes six IMW compressors which can fill approximately 3,500
CNG gallons per hour. The facility is owned and operated by Clean Energy.
About Clean Energy Fuels Corp.
Clean Energy Fuels Corp. (Nasdaq: CLNE) is the leading provider of
natural gas fuel for transportation in North America. We build and
operate compressed natural gas (CNG) and liquefied natural gas (LNG)
fueling stations; manufacture CNG and LNG equipment and technologies for
ourselves and other companies; develop renewable natural gas (RNG)
production facilities; and deliver more CNG, LNG and Redeem RNG fuel
than any other company in the U.S. For more information, visit www.cleanenergyfuels.com.
About NG Advantage LLC
NG Advantage is an innovative fuel provider trucking compressed natural
gas (CNG) in the U.S. – bringing the economic and environmental benefits
of North American natural gas to large institutions and industrial
customers without access to a pipeline. The Company’s current customers
include hospitals, paper mills, asphalt facilities, food processors,
industrial dry cleaners, LDCs, and light manufacturing facilities. With
a compressor station in Vermont, in southern New Hampshire and a third
in permitting in the greater Albany area, the Company currently serves
customers in Vermont, New Hampshire, Massachusetts and eastern New York.
For more information, visit www.NGadvantage.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 that involve risks, uncertainties and
assumptions, including statements about the anticipated benefits of
Clean Energy’s investment in NG Advantage and the station purchase, the
advantages of natural gas relative to fuel-oil and propane, anticipated
sales of CNG, and the ability of Clean Energy and NG Advantage to use
Clean Energy’s network of compression stations to bring the benefits of
natural gas to enterprises beyond the pipeline nationwide. Actual
results and the timing of events could differ materially from those
anticipated in these forward-looking statements as a result of several
factors, including, but not limited to, changes in the price of natural
gas fuel relative to fuel-oil, propane and other energy sources, lack of
demand for CNG, changes in governmental regulations, and the
capabilities of Clean Energy’s network of compression stations. The
forward-looking statements made herein speak only as of the date of this
press release and, unless otherwise required by law, the company
undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances. Additionally,
the reports and other documents Clean Energy files with the SEC
(available at www.sec.gov)
contain risk factors, which may cause actual results to differ
materially from the forward-looking statements contained in this news
release.
Copyright Business Wire 2014