Clean Energy Fuels Receives Financing for RNG Infrastructure Expansion


Clean Energy Fuels Corp. has entered into a six-year, $300 million senior secured term loan with Stonepeak, an alternative investment firm specializing in infrastructure and real assets. The credit agreement also provides for a two-year delayed draw term loan commitment of an additional $100 million.

Besides repaying existing loans, the financing from Stonepeak will provide Clean Energy with capital for new renewable natural gas (RNG) production facilities, as well as the expansion of the company’s fueling infrastructure targeting the heavy-duty truck market.

Clean Energy currently provides RNG to hundreds of fleets every day in the form of compressed natural gas (CNG) and liquified natural gas (LNG), which enables them to decarbonize large vehicles easily and affordably.

“Stonepeak is one of the most well-respected infrastructure investment firms operating in the energy transition space, and we’re excited to partner with them as we grow our RNG business,” says Clay Corbus, senior vice president for strategic development and head of renewable fuels at Clean Energy. “This financing agreement is very timely as we continue to see more RNG development opportunities come our way, and as we anticipate building additional stations to accommodate increased demand due to the arrival of Cummins 15-liter natural gas engine.”

“We see RNG as a practical and affordable energy solution for the transportation sector, with tailwinds supporting increasing adoptability,” says Michael Bricker, senior managing director at Stonepeak. “This, combined with its ability to curb fugitive methane emissions, makes it a critical part of decarbonization infrastructure, in our view. With its proven asset base and operating history, we believe that Clean Energy has differentiated itself both within this space and relative to earlier stage verticals and other platforms pursuing the energy transition.”

Clean Energy is developing a portfolio of RNG production facilities at dairies across the U.S. The first project is producing RNG in Texas and supplying it to the transportation market in Oregon through the state’s low-carbon fuels program. Multiple other facilities are in the final stages of completion.

The company is also expanding its RNG fueling infrastructure, which includes over 600 stations across North America. This comes at a time when Cummins Inc. is testing a new, larger natural gas engine for heavy-duty trucks with companies like Walmart, Werner, Knight Swift and UPS. These fleets are experiencing an improved fuel economy with more torque and power than previous models, while at the same time dramatically reducing greenhouse gas (GHG) and nitrogen oxide (NOx) emissions compared with diesel.

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