Clean Energy Corporation and Total, announced this Thursday a 50/50 joint venture to develop renewable natural gas (RNG) infrastructure, aimed at RNG production. The initial investment is up to $100 million.
Firstly, the joint venture will develop carbon-negative RNG facilities in the United States; plus, the initial investment could increase to $400 million as the development opportunities progress.
Secondly, the company’s statement underlined that Clean Energy and Total will provide the equity portion of the investments, so, the actual amount of capital may be even higher than $400 million “depending on the amount of leverage that is deployed.”
In addition, “Total will be providing credit support for Clean Energy development in the RNG value chain, including $45 million for contracted RNG fueling infrastructure,” the statement remarks.
On the other hand, the RNG is a fuel produced when carbon emissions are captured from dairies; then, turned into transportation fuel that reduces emissions and harmful effects on the atmosphere.
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Clean Energy, largest RNG provider in the U.S.
Moreover, compared with regular diesel, RNG has a carbon intensity of -317, compared with the 100 of diesel and 19 of electric batteries, therefore, the fuel is considered to be carbon-negative.
Also, Clean Energy is currently the largest renewable natural gas provider in the U.S. In fact, is the largest provider of this fuel for the California LCFS program. This fuel can also be used directly as vehicle fuel, or as feedstock for green hydrogen production or green electricity.
In fact, this is not the first partnership between Clean Energy and Total on the matter; they partnered to expand the use of renewable natural gas in the heavy-duty truck market with the Zero Now program. Which allows buyers to get renewable diesel trucks for the same price as regular ones.
Finally, Andrew J. Littlefair, Clean Energy CEO, said. “The finalization of this JV with Total, which was originally announced in December of last year, demonstrates the commitment both companies have to the growth of renewable natural gas; a fuel that can tackle serious climate issues today.”