USA: Clean Energy, Total sign JV to develop RNG infrastructure

The 50/50 joint venture is committing up to $400 million of equity, including credit support available, for upstream RNG projects and downstream fueling.

Clean Energy Fuels Corp. and its largest shareholder, Total SE, have signed a 50/50 joint venture to develop carbon-negative renewable natural gas (RNG) production facilities in the United States, as well as credit support to build additional downstream RNG fueling infrastructure.

The initial firm commitment is $100 million and can increase to $400 million as development opportunities progress. Since Clean Energy and Total will be providing the equity portion of the investments, the actual amount of capital invested in RNG projects may be higher than $400 million depending on the amount of leverage that is deployed, points the press release.

In addition, Total will be providing credit support for Clean Energy development in the RNG value chain, including $45 million for contracted RNG fueling infrastructure.

The formation of this JV was originally announced in December of last year, with up to $145 million available for upstream renewable natural gas projects and downstream fueling.

“The demand by customers for RNG continues to accelerate, highlighted by our recent announcement that the largest bus fleet in the U.S., LA Metro, had converted their entire fleet to RNG. This JV will help Clean Energy to continue to increase its supply of RNG in the years ahead,” said Andrew J. Littlefair, CEO and president of Clean Energy.

The companies have already partnered to expand the use of RNG in the heavy-duty truck market with the Zero Now program, which allows fleets to purchase RNG trucks for the same price as diesel trucks.

Clean Energy Fuel deliver RNG through compressed natural gas (CNG) and liquified natural gas (LNG) to its network of approximately 540 fueling stations across the U.S. and Canada.