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Clean Energy signs agreement with Amazon for low carbon RNG

Amazon Clean Energy

Clean Energy Fuels Corporation announced this Monday it signed an agreement with retail giant Amazon; the agreement is to provide low to negative carbon renewable natural gas (RNG).

Firstly, the fuel will be provided at 27 existing Clean Energy fueling stations and another 19 non-exclusive, new or upgraded Clean Energy-owned stations.

Secondly, the company expects to construct and to add new stations by the end of the year. The stations will be spread across 15 different states of the nation.

Thirdly, although the participation, or the particulars of the agreement with Amazon was not disclosed, the company said it signed with Amazon a Form 8-K warrant.

Moreover, according to the warrant, it was a Fuel Pricing Agreement signed with Amazon Logistics Inc., a subsidiary of the company. Clean Energy entered into a Transaction Agreement in which it issued to Amazon a warrant to purchase up to an aggregate of 53,141,755 shares.

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clean energy fuels

Clean Energy Fuels to expand RNG fuels solutions across the U.S.

In addition, the warrant shares will divide in multiple tranches. The first tranche of 13,283,445 Warrant Shares vested in connection with the execution of the Fuel Agreement. Subsequent tranches will vest over time based on discretionary fuel purchases by Amazon and its affiliates, up to a total of $500 million.

Furthermore, Andrew J. Littlefair, CEO and president of Clean Energy, said. “If the world is really going to tackle the issue of climate change, all of us need to find solutions that work both environmentally and economically; that is exactly what this agreement supports.”

He also added. “Our company was the first to commercially make RNG available as a vehicle fuel in 2013; and now fuels tens of thousands of vehicles across the country every day.”

Finally, as we have reported previously, this is not the first clean energy agreement that involves Amazon. Back in February it signed an agreement with Shell Energy Europe BV; for the procurement renewable energy from a subsidy-free offshore wind facility in the Netherlands.

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