Kenan Advantage Group Rolls Out Natural Gas Tractors Through Clean Energy’s Zero Now Program
NEWPORT BEACH, Calif.–(BUSINESS WIRE)–May 7, 2019 The demand for clean, cost-effective renewable natural gas (RNG) as a transportation fuel continues to rise as Clean Energy Fuels Corp. (Nasdaq: CLNE) announced it has reached agreement with trucking firms to lease or purchase more than 250 new heavy-duty trucks, fueled by its Redeem™ RNG.Clean Energy’s Zero Now program makes the cost of leasing or purchasing a new natural gas heavy-duty truck equal to the price or even lower than that of the same truck equipped with a diesel engine. In addition, truck fleets financed or purchased through Zero Now will be able to purchase Redeem fuel with a fixed discount to diesel at a significant spread.
With financing made available by Zero Now, along with grant programsavailable in many states, trucking companies are rolling out trucks equipped with the new Cummins-Westport (CWI) ultralow NOx ISX12N natural gas engine, which provide the same torque and reliability as their diesel counterparts. The ISX12N is certified by California Air Resources Board (CARB) to reduce smog-forming NOx emissions by 90 percent compared to the current engine standard. RNG reduces climate pollutants such as greenhouse gas, which takes carbon emissions completely out of trucking.
“We are seeing a positive response to this program as fleets are discovering the advantages of Zero Now when seeking a clean, affordable renewable fuel option that combats air pollution and climate change,” said Andrew J. Littlefair, president and CEO, Clean Energy. “This early adoption is particularly encouraging because it’s an endorsement of Near-Zero technology and the high level of performance it delivers.”
Fleets Take Delivery of Near-Zero Trucks
Among the first fleets taking delivery is Kenan Advantage Group, the nation’s largest leading bulk carrier, which has added 24 new near-zero trucks to its fleet through Zero Now. Kenan Advantage Group will be deploying its natural gas tractors in the company’s Merchant Gas Group that transports industrial gases. The company will also be utilizing renewable natural gas where available for this deployment.
“Clean Energy’s Zero Now is a win-win. It has provided us with an opportunity to bring the cost of a natural gas truck at parity with a diesel truck while offering a guaranteed fuel discount for five years,” said Bruce Blaise, president and CEO, Kenan Advantage Group.
TTSI is taking delivery of 40 RNG trucks, Freight Line Express is awaiting delivery of 12 trucks, Supra National Express has eight on tap, and Romans Trucking with six. Freshlink and Tradelink Transport have also taken advantage of the program by leasing new heavy-duty natural gas trucks.
More Redeem for California Airports
Redeem is the first commercially available RNG vehicle fuel. It is derived from capturing biogenic methane that is naturally produced by the decomposition of dairy, landfill, and wastewater treatment plant waste. Redeem enables at least 70 percent reduction in carbon emissions when displacing diesel or gasoline, according to CARB estimates.
Los Angeles International Airport has signed a contract to power 31 shuttle buses with Redeem for an expected 2,500,000 gallons over the life of the buses.
The County of Orange Public Works Department has signed a 5-year agreement with Clean Energy for the operations, maintenance and retailing of its public station which will result in dispensing a projected 750,000 gallons of Redeem.
Los Angeles World Airports (LAWA) has signed a two-year extension option for Clean Energy to supply an estimated 200,000 gallons of liquified natural gas (LNG) to power its airport bus fleet.
The County of Sacramento has entered into a contract to fuel its airport vehicles and school buses at two stations, for which Clean Energy will provide an expected 300,000 gallons of Redeem fuel, along with repair and maintenance services.
Growth in Transit Volume
Clean Energy won a renewal 3-year maintenance contract with the City of Fresno with two option years. The City uses approximately 2,000,000 gallons a year and has 112 compressed natural gas (CNG) buses.
The Los Angeles County Metropolitan Transportation Authority (LA Metro) put 41 new CNG buses into service that will fuel at Clean Energy stations. They are expected to use nearly 5,000,000 gallons of Redeem over their 12-year lifecycle. Clean Energy also signed a long-term contract to provide nearly 2,000,000 gallons of Redeem annually at its City of Santa Clarita Stations.
Refuse Stations Expand Capacity
Long-standing customer Livermore Sanitation has executed a contract to upgrade its station, which was originally built by Clean Energy 10 years ago. In addition to adding a new compressor, the station will be outfitted with nine time-fill hoses so it can fill its expanded fleet of 35 refuse trucks in a timely manner. Clean Energy will continue to provide operations and maintenance and RNG supply following the station upgrade.
USA Hauling and Recycling has executed its fourth CNG station with Clean Energy contract to build and operate a new 30-truck time-fill CNG station at its Waterbury, CT facility. These 30 new CNG refuse trucks will use an anticipated 400,000 gallons annually.
Clean Energy was awarded a contract from the City of Philadelphia to perform its CNG garage modifications, as well as build and operate a new 42 truck time-fill CNG station at the City’s 3033 South 63rd Street facility. These 42 new refuse trucks are anticipated to use 220,000 gallons annually.
Long-time customer Solterra Recycling Solutions, a division of Central Jersey Waste, renewed Clean Energy’s agreement for an additional five years.
Clean Energy has executed a one-year retail fuel contract with the City of Sacramento for a projected 350,000 gallons of Redeem to power its growing CNG refuse trucks at two retail sites.
Clean Energy was awarded City of Redlands RLNG supply contract for its public access natural gas station. The contract is for one year with two single year options and approximately 500,000 GGEs per year. Additionally, the County of Sacramento has signed a one-year maintenance contract with two single year options to support its refuse fleet. The station dispenses approximately 550,000 GGEs annually.
The City of Tacoma, WA is negotiating a multi-million dollar contract with Clean Energy following its RFP equipment solicitation to upgrade the City’s CNG station. The City plans to complete the significant station upgrade by the end of 2019 and has extended its maintenance contract with Clean Energy.
Bringing Natural Gas to Underserved Region
Clean Energy has entered into a 3-year fuel agreement with Rawhide Leasing who is providing natural gas service to the City of Mesquite, NV through a virtual pipeline by transporting an estimated 600,000 total gallons to supply fuel to the fast-growing young city. Rawhide Leasing will be fueling its trailers at Clean Energy’s public access fueling stations in Las Vegas.
About Clean Energy
Clean Energy Fuels Corp. is the leading provider of natural gas fuel and renewable natural gas (RNG) fuel for transportation in the United States and Canada, with a network of approximately 530 stations across North America that we own or operate. We build and operate compressed natural gas (CNG) and liquefied natural gas stations (LNG) stations and deliver more CNG, LNG and RNG vehicle fuel than any other company in the United States. Clean Energy sells Redeem™ RNG fuel and believes it is the cleanest transportation fuel commercially available, reducing greenhouse gas emissions by at least 70%. Clean Energy owns natural gas liquification facilities in California and Texas which produces LNG for the transportation and other markets. For more information, visit www.CleanEnergyFuels.com.