Company Update (NASDAQ:CLNE): Clean Energy Fuels Corp to Build New CNG Stations for Multiple Transit Agencies and Large School District
Clean Energy Fuels Corp (NASDAQ:CLNE) announced that it will construct new compressed natural gas (CNG) stations for Arlington Transit (ART) in Arlington County, Virginia; Nassau Inter-County Express (NICE) in Long Island, NY; andNorth Kansas City (MO) School District, which is set to become the largest school district in the U.S. to transition its school bus fleet to CNG.
“Despite lower oil prices, Clean Energy continues to add fueling partnerships across all our transportation markets,” said Andrew J. Littlefair, president and CEO of Clean Energy. “No matter if they are with a school district, municipality or trucking company, managers of large fleets are looking for a cleaner fuel that reliably costs less and does not have volatile price swings. Natural gas continues to meet their needs.”
Additional agreements across transportation market segments of transit, refuse, trucking and the bulk fuel market were also announced.
- NICE has awarded Clean Energy the contract to design, build and operate and maintain a new CNG station that will, upon completion, replace its existing Mitchel Field station, and operate and maintain the existing CNG stations. The five-year contract valued at just over $13 million will extend the partnership between NICE and Clean Energy and will support a fleet of over 200 CNG buses. Clean Energy currently supports another 100 CNG buses at an additional station and provides a total of 4.6 million GGEs of CNG annually for the NICE bus fleet. Completion of the new station is expected for summer 2017.
- Clean Energy has been contracted by W.M. Schlosser Co. to build a fast-fill CNG station at a new bus depot being constructed for ART, which will initially deploy 25 new CNG transit buses that are expected to consume 225,000 DGEs of CNG a year. ART has plans to grow the fleet to 75 CNG buses.
- The North Kansas City School District will replace 124 school buses with new CNG buses with an option to purchase an additional 30 over the next 10 years. Clean Energy will construct a new station that includes fast-fill and time-fill fueling options using two Clean Energy Compression(CEC) compressors as well as modifying a maintenance facility to facilitate CNG buses. The 15-year contract will be funded through financing secured by the District and is a joint-partnership between the North Kansas City School District, Clean Energy and Midwest Bus Sales, based inBonner Springs, KS, which will supply the District’s new CNG school buses. This transition for the 20,000-student School District will begin for the 2016 school year when the Clean Energy station is scheduled to be operational and is expected to achieve a cumulative reduction of more than 5,000 metric tons of greenhouse gas emissions over the 10-year span.
- The Regional Transportation Commission of Southern Nevada (RTC) ordered an additional 80 buses that will fuel at a Clean Energy operated and maintained station, which is expected to be an incremental 700,000 DGEs of CNG annually.
- Raven Transport has ordered an additional 20 liquefied natural gas (LNG) trucks to add to their fleet of 187 LNG trucks fueling with Clean Energy. The new trucks will fuel at Clean Energy stations in the southeast U.S. and are expected to consume 420,000 DGEs of LNG annually.
- Clean Energy expanded its fueling partnership with Dart Trucking as it redeploys 25 CNG trucks to new Clean Energy stations in Ohio andMissouri. Clean Energy will open five additional stations for the fleet that is expected to consume 450,000 DGEs a year.
- Bimbo Bakeries, currently fueling a fleet of CNG trucks at a Clean Energy station in Sacramento, CA, will deploy nine additional CNG trucks inPennsylvania that are expected to consume over 40,000 DGEs a year.
- Manhattan Beer Distributors signed a new agreement to fuel 20 CNG trucks at multiple Clean Energy stations in New York, consuming an expected 160,000 DGEs annually.
- Off Spec Solutions will begin fueling 25 LNG trucks at several Clean Energy stations in the southwest U.S. and are expected to consume 250,000 DGEs a year.
- Schmidt Liquid Transport will initially deploy 10 CNG trucks and fuel at the recently opened Clean Energy station in North Platte, NE. These trucks are expected to consume 180,000 DGEs a year and Schmidt has plans to increase its CNG fleet.
- Central Freight and Clean Energy expanded their fueling partnership with an additional 21 trucks fueling at Clean Energy’s Love Field station inDallas and are forecasted to consume 149,000 DGEs of CNG annually.
- Modern Transportation signed a new fuel agreement that will expand an existing partnership with over 20 CNG and LNG trucks which are being deployed in Florida, South Carolina, Texas and Colorado. The new trucks are expected to consume in excess of 400,000 DGEs of fuel a year.
- Over the last four months, Clean Energy has expanded its America Natural Gas Highway of truck-friendly stations with openings in Ocala, FL;Orlando, FL; Atlanta, GA; Eden NC; Pearl, MS; Knoxville, TX; Midway, FL; Carlisle, PA; Ruther Glen, VA; Perris, CA, Lake Havasu, AZ; Vandalia, OH; Fort Chiswell, VA and Kansas City, KS., bringing the total to 19 Clean Energy stations opened in 2015 which can accommodate a heavy-duty truck.
- Republic Services continues to expand its already significant partnership with Clean Energy with a recent operations and maintenance agreement for a station that fuels 75 refuse trucks in Huntington Beach, CA, which are expected to consume 600,000 DGEs of CNG a year.
- Garden City Sanitation in Santa Clara, CA, signed an operations and maintenance agreement that will serve 45 refuse trucks that consume 350,000 DGEs a year.
- The City of Spokane, WA, will begin fueling 20 solid waste trucks at a recently opened CNG station that was designed and equipped by Clean Energy. The City plans to add approximately 10 trucks per year with as many as 100 eventually being fueled at the station. Each truck is expected to consume 11,500 DGEs annually.
Bulk Fuel Sales
- PG&E signed a bulk fuel sales contract to receive over 500,000 gallons of LNG from Clean Energy’s Boron plant in July and another 1,000,000 gallons of LNG in August for a pipeline integrity testing program.
Natural gas fuel costs up to $1.00 less than gasoline or diesel, depending on local market conditions. The use of natural gas fuel 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 in North America. (Original Source)
Shares of Clean Energy Fuels closed yesterday at $4.01. CLNE has a 1-year high of $10.48 and a 1-year low of $3.73. The stock’s 50-day moving average is $5.46 and its 200-day moving average is $6.34.
Clean Energy Fuels Corp is engaged in selling natural gas fueling solutions to its customers in the United States and Canada. It also designs, builds, finances, and operates natural gas filling stations for vehicle fleets.