Transit and Refuse and Trucking and the Post Office:
A Rundown of Natural Gas Vehicle Fueling Progress,
Meanwhile Second Quarter Volumes Up But Revenue Down
Transit agencies in Texas and California are among the standouts as Clean Energy Fuels issued a mid-year rundown of recent contracts in the natural gas vehicle fueling business. updated August 4
Clean Energy will provide Dallas Area Rapid Transit with operation and maintenance support of four compressed natural gas fueling outlets for another four years, according to Tuesday’s release, noting that DART operates 537 natural gas-fueled buses and 123 shuttles and paratransit vehicles.
DART’s four CNG fueling outlets are expected to dispense approximately 40 million GGE/gasoline gallon equivalents over the contract period, the supplier says.
RNG for LA Metro
On July 27, Clean Energy further notes, the Los Angeles County Metropolitan Authority approved the purchase of an additional 65 CNG buses, expanding on a purchase earlier in July of 295, for a total of 360 new CNG buses (F&F, July 31).
LA Metro operates “the largest CNG fleet in the nation with a total of 2,250 buses, all of which may,” states yesterday’s Clean Energy release, be fueled with Redeem brand RNG/renewable natural gas, “the cleanest transportation fuel available rated 70% cleaner than diesel.”
Elsewhere in Transit
Elsewhere in transit, California’s Santa Cruz Metropolitan Transit has extended its LNG fueling contract with Clean Energy, as has the Orange County Transportation Authority. And, “The Cities of Fresno, Calif., and Tempe, Aria., along with the National Park Service Grand Canyon and Kings County Area Public Transit in Hanford, Calif., have each signed operations and maintenance agreements with Clean Energy for their stations.
“These agencies are estimated to dispense close to 6 million GGEs per year,” the supplier says.
U.S. Post Office Truckers
In the heavy duty trucking sector, Clean Energy reports the addition of three large U.S. Postal Service carriers to its customer list. They include one of the largest Post Office carriers, St. Augustine, Fla.-based Postal Fleet Services and as well as Thunder Ridge Transport, a carrier servicing 13 states, and Edward Zengel & Sons, also based out of Florida.
“The addition of these three fleets brings the total number of USPS carriers fueled by Clean Energy to 13,” Clean Energy says.
Also in trucking, longtime Clean Energy customer Ruan Transportation, has awarded Clean Energy a fueling contract for CNG trucks operating out of Dallas and Austin, Texas. Food Express, a national transporter of food grade commodities, based out of Arcadia, Calif. will begin fueling with Clean Energy for its routes in Southern California.
“The addition of these fleets represents approximately 400,000 GGEs per year,” states this week’s release.
In the refuse sector, the company was awarded a contract to design and build a new station for Patriot Disposal, the refuse provider to Prescott Valley, Ariz. The Cities of Denver, Sacramento and Redlands, Calif., and Marborg Industries in Santa Barbara, have also extended fueling agreements for refuse vehicles.
“The addition of these fleets represents approximately 400,000 GGEs per year,” Clean Energy says.
LNG to CNG in San Bernardino
Elsewhere in California, the City of San Bernardino awarded Clean Energy a multi-year liquefied natural gas supply and maintenance contract.
“The LNG is converted into CNG for the City’s public fueling station which is utilized by many neighboring CNG school bus and refuse fleets,” Clean Energy says, stating that the various fueling contracts and maintenance agreements represent approximately 2.25 million GGEs per year.
Clean Energy said yesterday that it delivered 88.4 million equivalent gallons of natural gas fuel in the second quarter of 2017, a 6.6% increase from 82.9 million gallons delivered in the same period in 2016. For the six months ended June 30, the company said, it delivered 173.5 million gallons, an 8.2% increase from 160.4 million gallons delivered in the same period in 2016.
Revenue for the second quarter of 2017 dropped to $81.0 million, however: a 25% decrease from $108.0 million in the second quarter of 2016.
‘A Lower Effective Price per Gallon’
“This decrease was primarily due to a lower effective price per gallon because of the company’s sale of certain assets related to the upstream production portion of its RNG business to BP,” states the Clean Energy earnings release.
Because of the sale (F&F, March 1), the amount of money received in the form of renewable and California LCFS/low carbon fuel standard credits has decreased.
Further, key federal excise tax credits for alterative fuels expired at the end of 2016, and Clean Energy suffered too from declines in its fueling station construction and compressor businesses.
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Source: Clean Energy Fuels with Fleets & Fuels follow-up