Photo: Courtesy of Clean Energy

Clean Energy and Total team up for carbon-negative fuel

U.S. alternative fuels supplier Clean Energy Fuels and European oil and gas producer Total signed a new joint venture for renewable natural gas production and downstream fueling infrastructure.

Clean Energy and Total team up for carbon-negative fuel
Courtesy of Clean Energy

The 50/50 joint venture is for the development of carbon-negative renewable natural gas (RNG) production facilities in the United States.

The initial commitment is $100 million that can increase to $400 million, as development opportunities progress.

In addition, Total will be providing credit support for Clean Energy development in the renewable natural gas value chain, including $45 million for contracted renewable natural gas fueling infrastructure.

Carbon-negative RNG is produced when carbon emissions are captured from dairies and turned into transportation fuel. The California Air Resources Board gives these carbon-negative RNG projects a weighted average carbon intensity (“CI”) Score (gCO2e/MJ) of -317 compared to 100 for diesel and 19 for electric batteries.

RNG can be used directly as a vehicle fuel or can be used as a feedstock to produce “green” hydrogen or “green” electricity and still generate LCFS environmental credits.

Clean Energy is the largest provider of RNG as a transportation fuel in the United States, and the largest RNG fuel provider under the California LCFS program.

Clean Energy and Total have already partnered to expand the use of RNG in the heavy-duty truck market with the Zero Now program, which allows fleets to purchase RNG trucks for the same price as diesel trucks.

Andrew J. Littlefair, CEO and president of Clean Energy 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 RNG, a fuel that can tackle serious climate issues today. The demand by customers for RNG continues to accelerate, highlighted by our recent announcement that the largest bus fleet in the U.S., LA Metro, had converted their entire fleet to RNG. This JV will help Clean Energy to continue to increase its supply of RNG in the years ahead.”