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LA Metro Awards Multi-Year Contract for Clean Energy's Redeem(TM) Renewable Natural Gas to Fuel Nation's Largest CNG Bus Fleet

  • May 26th, 2017
  • 126 views

NEWPORT BEACH, Calif. / CRWE PRESS RELEASE / May 26, 2017Clean Energy Fuels Corp.,  (Nasdaq: CLNE) announced today that the Los Angeles County Metropolitan Transportation Authority (Metro) has awarded Clean Energy a renewable natural gas (RNG) contract to fuel its fleet of transit buses. The deal calls for Clean Energy to provide Metro its Redeem™ brand of RNG, the first renewable and commercially available vehicle fuel made entirely from 100% organic waste.

The fueling contract begins with a one-year pilot where Clean Energy will provide Redeem to one of Metro’s eleven compressed natural gas stations, which are currently operated and maintained by Clean Energy. Each station provides fuel for approximately 200 CNG buses. Execution of an additional option will allow Clean Energy to provide Redeem to the entire fleet of 2,200 natural gas buses for four more years, for an anticipated 38 million gasoline gallon equivalents (GGEs) each year.

Over the five year period, the transition to RNG will reduce Metro’s greenhouse gas (GHG) emissions by over 520,000 metric tons over the use of regular natural gas and by almost 900,000 metric tons over the use of diesel. Unrelated to the use of Redeem, Metro will begin retrofitting and replacing their buses with the new Cummins-Westport Low NOx CNG engines that reduce smog-forming NOx and GHG emissions that are 90% lower than the EPA NOx limit.

“As one of the largest transit agencies in the nation, we take our responsibility to the environment and the taxpayers very seriously,” said Cris B. Liban, Metro Executive Officer for Environment and Sustainability. “The use of RNG allows us to further exceed our environmental goals and reduce our reliance on the use of extracted fossil fuels, while ensuring the seamless transition to a cleaner, greener fleet.”

Redeem is derived from biogenic methane or biogas, which is methane that is naturally generated by the decomposition of organic waste. The methane gas is then processed, purified and sent into the interstate natural gas pipeline and transported to Clean Energy’s and its customers’ stations.

“We are continuously assessing new technologies in transportation and perform a rigorous analysis before adopting anything,” said John Drayton, Metro Director of Vehicle Technology. “In this case, transitioning to renewable natural gas along with the use of low NOx engines reduces our fleet’s NOx emissions by 90%, so it was an easy decision.”

“Metro is putting the needs of its customers and the people of Los Angeles County at the forefront in its decision to switch to Redeem and the latest clean engine technology,” said Tyler Henn, Vice President and General Manager of Clean Energy Renewables. “They have chosen an alternative that will make significant strides in cleaning up the air and reducing harmful air toxins and greenhouse gases at an affordable price.”

About Clean Energy

Clean Energy Fuels Corp. is the leading provider of natural gas fuel for transportation in North America. We build and operate CNG and LNG vehicle fueling stations; manufacture CNG and LNG equipment and technologies; develop RNG production facilities; and deliver more CNG and LNG vehicle fuel than any other company in the U.S. Clean Energy also sells Redeem RNG fuel and believes it is the cleanest transportation fuel commercially available, reducing greenhouse gas emissions by up to 70%. For more information, visit www.CleanEnergyFuels.com.

About Metro

The Los Angeles County Metropolitan Transportation Authority (Metro) is unique among the nation’s transportation agencies. Created in 1993, Metro is a multimodal transportation agency that transports about 1.3 million passengers daily on a fleet of 2,200 clean air buses and six rail lines. The agency also oversees bus, rail, highway and other mobility-related building projects and leads transportation planning and programming for Los Angeles County.

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 without limitation statements about amounts of RNG expected to be consumed by Metro. 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, without limitation, execution of the contract option. 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 the Company 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.

Contacts:

Clean Energy Media Contact:
Jason A. Johnston
949.437.1411
jason.johnston@cleanenergyfuels.com

Clean Energy Investor Contact:
Tony Kritzer
949.437.1403
tkritzer@cleanenergyfuels.com

Souce:  Clean Energy Fuels Corp.

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