Multiple Biomethane Sources for Product Already Available to Fleets
Clean Energy Fuels says it’s to be “the first company to commercially distribute a renewable natural gas vehicle fuel,” as it’s launched the brandname “Redeem” for product made from waste from landfills, large dairies and sewage plants. this item was originally posted on October 4 and substantially updated on October 7
“Thousands of cars, taxis, shuttles and industrial fleets in California are now using Clean Energy’s Redeem, which is up to 90% cleaner than diesel and 100% renewable,” says a release.
“Our goal is to produce and distribute 15 million gallons of Redeem in our first year,” Clean Energy Fuels president and CEO Andrew Littlefair said in the Redeem announcement.
“Redeem is the lowest carbon footprint fuel commercially available and the only affordable renewable fuel for heavy duty trucks,” said Harrison Clay, president of Clean Energy subsidiary Clean Energy Renewable Fuels.
“We believe this creates an environmental and economic incentive for companies inside and outside California who are looking to make a major reduction in the greenhouse gas emissions from their fleet operations while still saving on their fuel bill. Redeem makes that possible,” Clay said.
As for the cost, “We believe that demand will outstrip supply, and that competitive pricing will apply,” Clay told F&F.
It’s also clear that the wider availability of biomethane, and the RIN credits it may earn under RFS2, the U.S. EPA’s Renewable Fuel Standard program, will complicate pricing – possibly to the advantage of the fleet operator.
“If a customer wants a long-term contract, then we are typically looking for them to share in both the risk and the reward of the credit system,” Clay says.
Texas and Michigan, Tennessee to Come
“If the RIN value is high enough, they may get a discount.” (RIN stands for Renewable Identification Number).
Clean Energy (NASDAQ:CLNE) said further that it is “staking a leadership position in the renewable fuels market through its significant investment in a natural gas fueling infrastructure, including 400 fueling stations throughout the nation, and in the development of multiple biomethane production facilities that are expected to produce Redeem.”
Clean Energy currently makes Redeem biomethane at its McCombs Landfill facility outside Dallas and at the Sauk Trail Hills Landfill in Canton, Mich. It is building a third facility at the North Shelby Landfill in Millington, Tenn. (F&F, August 25, 2012), says it has plans for more, and that, in addition, it “sources biomethane from third parties to market and distribute as Redeem vehicle fuel.”
Clean Energy also has contracts in place with landfill operators in the Pacific Northwest and Canada, Clay says.
Jim Harger is chief marketing officer at Clean Energy Fuels.
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Source: Clean Energy Fuels with Fleets & Fuels follow-up