Clean Energy Sees Greater Demand for Carbon-Negative Fuel -- Commodity Comment
10 March 2021 - 11:27PM
Dow Jones News
By Mary de Wet
Clean Energy Fuels Corp. said Wednesday that it is working with
BP Products North America Inc, a unit of BP PLC, to develop and
operate new renewable natural gas facilities at dairies and other
agriculture facilities.
On the BP deal:
Clean Energy and BP plan to share control of the joint venture
equally.
"The company will have the option to contribute up to 50% of the
JV's capital and 100% of the RNG produced from the projects
developed and owned by the JV will be provided to the vehicle fuels
market pursuant to the existing marketing agreement between BP and
the company," Clean Energy said in a filing with the Securities and
Exchange Commission.
BP has advanced $50 million to Clean Energy in a loan agreement
to fund capital costs and expenses incurred prior to formation of
the joint venture, the company said in the filing.
"The outstanding principal amount of the loan accrues interest
at the rate per annum equal to LIBOR plus 433 basis points;
interest payable under the loan is essentially offset by BP's
obligation to pay the company a monthly JV management fee of
$200,000 pursuant to the (memorandum of understanding)," Clean
Energy said.
On carbon-negative fuel:
"Carbon-negative RNG is being used today by thousands of
vehicles with more and more fleets requesting it every week,"
Andrew Littlefair, CEO and president of Clean Energy, said in a
release.
"Taking this next step allows us to expand the availability of
the fuel while providing dairy owners with a way to make a
significant impact on the environment and create an additional
revenue stream."
Clean Energy said it is the largest provider of renewable
natural gas for transportation in the U.S. and Canada, with about
550 fueling stations.
Write to Mary de Wet at mary.dewet@dowjones.com
(END) Dow Jones Newswires
March 10, 2021 07:12 ET (12:12 GMT)
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