Clean Energy, Total Enter MoU to Expand RNG Infrastructure


Clean Energy Fuels Corp., a provider of renewable natural gas (RNG) as a transportation fuel in the U.S. and Canada, and Total S.E. have entered a memorandum of understanding (MoU) to create a 50/50 joint venture to develop carbon-negative renewable natural gas (RNG) production facilities in the U.S., as well as credit support to build additional downstream RNG fueling infrastructure. 

Total will provide $50 million and Clean Energy $30 million for the proposed joint venture. Total will also provide credit support of $65 million to support Clean Energy development in the RNG value chain, including $45 million for contracted RNG fueling infrastructure.

The companies have already partnered to expand the use of RNG in the heavy-duty truck market with its Zero Now program, which allows fleets to purchase natural gas trucks for the same price as diesel trucks. The demand for carbon-negative RNG, which is derived from dairies and other agricultural facilities, has rapidly accelerated through the program. 

Negative-carbon RNG is produced when carbon emissions are captured from dairies and turned into transportation fuel, reducing the harmful effects on long-term climate change. As a result, the California Air Resources Board gives these carbon-negative RNG projects a carbon intensity (CI) score (gCO2e/MJ) of -250 (or lower) compared to 97 for diesel and 46 for electric batteries. 

“We are very fortunate to have a partner in Total that is so supportive on a number of levels,” says Andrew J. Littlefair, president and CEO of Clean Energy. “Both our companies have recognized the enormous opportunity that a carbon-negative fuel can play in our ambitious efforts to combat climate change. This new agreement will allow Clean Energy to increase the flow of low-CI RNG as the demand expands, as well as the capital to build new fueling stations for additional contracted fleets.”

Clean Energy says its goal is to meet the rapidly growing demand by customers for carbon-negative RNG and to deliver 100% Redeem branded RNG to its entire fueling infrastructure by 2025.

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