The Chicken Versus Egg Issue Is ‘Off the Table’
Clean Energy Fuels (NASDAQ:CLNE) has released the third edition of The Road to Natural Gas, “an update of its growing portfolio of customers making the switch to natural gas as a transportation fuel or expansion of their current fleets.”
The release includes a staggering amount of information on Clean Energy customers and new business in the refuse, transit, and trucking industries, as well as progress on Clean Energy’s drive to make liquefied natural gas across the U.S. – its America’s Natural Gas Highway project.
“This year is already shaping up to surpass 2012 in the drive towards natural gas,” Clean Energy president and CEO Andrew Littlefair said in a release.
“After taking the ‘chicken versus egg’ issue off the table as we completed the first 70 stations of America’s Natural Gas Highway, and with gasoline and diesel prices at near historic high levels, we are seeing significant interest and movement by the long-haul trucking industry to make the switch to natural gas. I’m also pleased by Clean Energy’s growth in our core businesses of refuse, transit and airports with a total of 127 new station projects completed in 2012, an 87% increase in overall station construction over 2011,” Littlefair said.
The third edition of The Road to Natural Gas sums up the natural gas fuel agreements signed or executed since the second edition was released on November 1.
Clean Energy says that with the current national average price of $4.14 a gallon for diesel and $3.74 for gasoline (as of February 18), “both fuels are significantly more expensive than natural gas at the pump, up to $1.50 depending on local market conditions.”
The Road to Natural Gas(as released by Clean Energy Fuels), Volume III; February 25, 2012
New Fuel and Service Agreements with Clean Energy (November 2, 2012 – February 25, 2013)
Refuse/Other Vocational Industries
Since the last edition of Road to Natural Gas, 455 new CNG refuse trucks were delivered to Clean Energy’s 101 refuse customers and another 567 additional CNG vehicles were ordered. The average refuse truck consumes over 10,000 gallons of fuel a year. A few recent highlights include:
- New York City Department of Sanitation, the largest municipal refuse fleet in the country, selected Clean Energy to maintain their CNG station in Queens. As DSNY expands their CNG fleet, Clean Energy expects to construct additional stations located throughout the NYC area.
- Clean Energy is constructing its first fuel station that will use renewable natural gas for Atlas Disposal in Sacramento, CA. The bio gas will be derived from a food-waste Anaerobic Digester, be cleaned and turned into CNG for Atlas Disposal’s trucks.
- The City of Los Angeles and Clean Energy extended its relationship with a five-year contract that will represent millions of gallons of LNG to be provided for its fleet of refuse trucks.
- Clean Energy will construct a fuel station for Alameda County Industries in San Leandro, CA that is expected to provide CNG for 36 trucks.
- Clean Energy signed an agreement to construct a station for a new customer, Garden City Sanitation in Santa Clara, CA, that is anticipated to fuel their 47 CNG trucks.
- Clean Energy is constructing another station for Republic Services in Anaheim, CA that is projected to fuel 78 additional CNG trucks.
- The City of Tampa, FL began fueling CNG refuse trucks at Clean Energy’s Tampa Airport station. Tampa’s mayor announced plans for moving their entire fleet of more than 100 trucks to CNG.
- The City of Tempe, AZ began fueling their CNG trucks at their LCNG station that is operated and maintained by Clean Energy.
- The City of Scottsdale, AZ has started fueling their CNG refuse trucks at their station that was recently upgraded by Clean Energy.
- Clean Energy opened the first CNG station for USA Hauling, Connecticut’s largest waste & recycling company. Metro Taxi, Yellow Cab and AT&T CNG vehicles are also fueling at the station, which is located in Hartford.
- Covanta Essex opened its first CNG fueling station in Newark, NJ as part of the overall Covanta/Clean Energy national agreement.
The ready-mix concrete truck sector has begun to make the transition to natural gas as a transportation fuel demonstrated by the number of CNG trucks on display at the World of Concrete exhibition this month. Clean Energy is fueling ready-mix concrete CNG trucks for Ferrara Bros. Building Materials Corp. in New York and Ozinga in the Midwest.
- Clean Energy is constructing its first fueling station for the asphalt industry in Wisconsin to serve Northeast Asphalt, Inc.’s new CNG-filling portable trailers to provide CNG for mobile asphalt plants.
- New York City Mayor Michael Bloomberg and Clean Energy co-founder T. Boone Pickens last week unveiled the first CNG-powered gourmet food truck owned by Neapolitan Express. The truck also features CNG-powered cooking equipment and generators. Clean Energy will be the exclusive fuel provider for Neapolitan as it rolls out additional CNG food trucks across the country.
- The City of Torrance, CA signed an agreement with Clean Energy to construct, own and operate a private CNG fueling facility for up to 70 buses and over 20 trash trucks.
- Clean Energy signed a contract with Veolia Transportation and another with MV Transportation, to construct, own and operate private CNG stations expected to fuel 150 Los Angeles Department of Transportation buses.
- The City of Tempe, AZ will replace 40 gasoline buses with CNG units that will fuel at a Clean Energy station.
Long Beach, CA Transit completed its first phase to transition over 60 electric hybrid buses to CNG as part of a master agreement with Clean Energy to oversee maintenance of the its CNG fueling station.
- The cities of Las Vegas, Dallas and Los Angeles added para-transit vehicles to their existing fleets.
- Clean Energy customer and transit agency for San Bernardino County, CA, Omnitrans, was the first customer to receive 60 ft. articulated CNG buses built by New Flyer Industries, a leading manufacturer of CNG buses.
- Dallas Area Rapid Transit (DART) is now taking delivery of five new CNG transit buses every week until the agency reaches its 452-bus order. DART will fuel its total CNG fleet, which includes 200 para-transit vehicles, at four CNG stations built by Clean Energy.
- Canton, OH’s transit agency, SARTA, has begun to fuel its CNG bus fleet at Clean Energy’s private and public fueling stations in the area.
- Super Shuttle, already one of the country’s leaders in the transition to CNG, is expanding its CNG fleet in California by over 100 new CNG vans.
- Clean Energy opened a new CNG station at Hertz Rent-A-Car’s LAX property.
- Clean Energy opened a CNG station at San Diego International Airport to service Enterprise Rental and Ace Parking among other fleet vehicles serving the area.
- Chicago added 63 CNG taxis and para-transit vehicles growing their total to over 400 NGV vehicles, an increase of 39% since the beginning of 2012.
- Partnering with Parking Company of America, Clean Energy opened two new stations at Cleveland-Hopkins International Airport.
- Bell Transportation announced it is adding an additional 90 CNG taxis to their fleet that will fuel at Clean Energy’s station at the Las Vegas Airport.
- San Francisco Yellow Cab added 35 CNG taxis to their fleet, which fuels at Clean Energy’s SFO Airport station.
As the latest transportation sector to transition to natural gas, the long-haul trucking industry is adding trucks to their fleets, which are expected to fuel at Clean Energy’s LNG and CNG stations. Below are some of the most recent natural gas adopters:
- YRC Worldwide added four LNG trucks to their Southern California fleet.
- UPS has expanded their LNG fleet to 70 with 12 additional tractors that will fuel at Clean Energy’s Phoenix station.
- Modern Transportation ordered its first LNG tractors and will fuel at Clean Energy’s Latta, SC station along the I-95 corridor.
- Lancaster Foods deployed their first two LNG trucks in Maryland, where they will fuel at Clean Energy’s network of stations in the Mid-Atlantic area.
- 99 Cent Stores added 13 LNG trucks to their Southern California fleet.
- California Cartage Company signed an agreement with Clean Energy to construct a fueling station for yard hostlers at its container site in Los Angeles.
- Red Bull has recently deployed two new LNG trucks in CA.
- Land O’Lakes added eight LNG trucks to its CA fleet.
- Cintas has deployed four LNG trucks in CA.
Stations on Clean Energy’s America’s Natural Gas Highway Completed November 2012 – January 2013
- Gretna, NE Flying J
- West Memphis, AR Flying J
- Wells, NV Flying J
- Lafayette, LA Clean Energy
- Midland, TX Flying J
- Pontoon Beach, IL Flying J
- Roland, OK Pilot Station
- Perrysburg, OH Flying J
- Lake Station, IN Flying J
- Indianapolis, IN Flying J
- Shreveport, LA Flying J
- Cheyenne, WY Flying J
- Lake Havasu, AZ Pilot
- Jacksonville, FL Pilot
- Matthews, MO Flying J
- Mesquite, TX Clean Energy
- Oak Creek, WI Pilot
- Altoona, IA Pilot
- Fort Worth TX South Clean Energy
- Albuquerque, NM Flying J
- Coachella, CA Clean Energy
- Platte, NE Flying J
As Clean Energy continues to build out its America’s Natural Gas Highway, we have signed agreements with regional partners that provide a network of locations for additional natural gas fueling stations. We will work with the below partners to identify strategic locations for new Clean Energy stations.
- Road Ranger, a leading truck stop, gas station and convenience store chain in the Midwest
- Suhaan Group, a Houston-based regional operator of truck fueling stations
- Petroleum Wholesale, a Southwest operator of truck stations and gasoline stations
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Source: Clean Energy Fuels