Delivers 50.6 Equivalent Gallons of Natural Gas in Third Quarter,
Acquires Controlling Stake in NG Advantage to Broaden Its Market
Clean Energy Fuels reports delivery of 50.6 million gasoline equivalent gallons of compressed natural gas during the third quarter – a company record. Clean Energy also disclosed plans to boost its CNG sales further, for industrial users: it’s to take a controlling interest in New England’s NG Advantage, which was founded in 2011 and which delivers CNG via tube trailer to off-pipeline customers. updated on October 22
The NG Advantage deal is to include Clean Energy’s purchase of the NG Advantage compression facility in Milton, Vt. The facility is on track to supply nearly 16 million GGEs of CNG per year, and “will immediately become Clean Energy’s highest-volume station in its nationwide network of almost 500.”
Clean Energy recently opened a station in Pembroke, N.H. to fill NG Advantage delivery trucks too (F&F, July 16). Clean Energy pledged this week to build more such stations using compressors from its IMW unit (Pembroke has six).
Clean Energy issued additional third quarter news on October 22, reporting that it added 43 new fleet customers during the period and that, among other developments, it would open its LNG station in Carlisle, Pa. to support a pilot natural gas truck program by the Giant/Martin’s grocery chain.
‘Natural Gas to New Markets’
“The NG Advantage purchase is a perfect example of Clean Energy’s focus on aggressively pursuing new market opportunities to help rapidly grow our CNG gas sales,” Clean Energy president and CEO Andrew Littlefair said in a release. “Our record growth in overall delivered gallons combined with the new market reach of NG Advantage positions Clean Energy to keep growing as our trucking business develops.”
“We immediately recognized the potential in NG Advantage as a powerful partnership combining Clean Energy’s leadership in natural gas fueling and compressor technology with NG Advantage’s market presence and pioneering delivery system,” Littlefair said. “NG Advantage’s groundbreaking ‘virtual pipeline’ currently brings natural gas to new markets in the Northeast with the potential of expanding to other areas in North America that do not have direct access to natural gas pipelines.”
NG Advantage founder and president Tom Evslin will remain with the company as CEO and its second largest investor, and will continue to oversee operations from Milton.
‘Forging a New Industry’
“Rising and unpredictable fuel costs have made it exceptionally difficult for manufacturers and facilities without access to the nation’s natural gas pipeline network to compete in an increasingly competitive marketplace,” Evslin says in the Clean Energy release.
“NG Advantage is forging a new industry which meets this need, and the partnership with Clean Energy ensures our customers will be working with the most experienced natural gas fuel provider at every step in the process.
“Clean Energy had the foresight to establish the country’s largest network of compression stations, Evslin said. “Although they were originally built for vehicle fueling, they compress gas to exactly the pressure we need to fill our trailers and we expect many will be suitable for co-location. We look forward to using this network to rapidly bring the benefits of natural gas to enterprises beyond the pipeline nationwide.”
20-Plus Contracts in Place
Clean Energy notes that NG Advantage has exclusive long-term contracts with more than 20 energy-intensive organizations served by its Milton and the newly-opened Pembroke facilities. The Pembroke station can fill approximately 3,500 CNG gallons per hour. The facility is owned and operated by Clean Energy.
Jim Harger is chief marketing officer at Clean Energy Fuels.
Peter Grace is senior VP for sales.
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Source: Clean Energy Fuels with Fleets & Fuels follow-up