Clean Energy Fuels - Catalysts For Renewable Fuel

Clean Energy Fuels (CLNE) provides natural gas as an alternative fuel for vehicle fleets, helping reduce the amount of climate-harming greenhouse gas emissions. The company supplies renewable natural gas (RNG), compressed natural gas (CNG), and liquified natural gas (LNG) for light, medium, and heavy-duty vehicles.

Additionally, it builds and operates 550 natural gas fueling stations in the United States and Canada. As of the end of Fiscal 2019, the company served approximately 1,000 fleet customers operating around 48,000 natural gas vehicles.

Quarterly sales decreased due to the global pandemic. The slowdown in activity was primarily in airports, public transit, and government fleet customer markets. However, we are still confident in the company’s ability to turn a profit and maintain a competitive advantage. Clean Energy has maintained its competitive advantage by lowering emissions and costs for customers. It is also the only company in the industry to offer CNG, LNG, and RNG fueling.

With investors and consumers flocking to companies like Tesla (TSLA) and Nikola (NKLA) for clean-energy semi-trucks, the company should be in the spotlight for its energy efficiency. A near zero natural gas truck is certified to produce emissions of less than one-third of an electric truck. This alone gives CLNE a massive competitive edge because it is currently a leader in the natural gas market.

In 2018, leading energy company, Total SA (TOT), agreed to purchase 50.8 million shares of CLNE common stock for $83.4 million to become the largest shareholder with a 25% stake. This resulted in the launch of Zero Now – the company’s truck financing program to expand natural gas into the large heavy-duty trucking market.

More recently, Clean Energy and Chevron (CVX) announced an initiative to supply trucks that serve the California ports of Long Beach and Los Angeles. And these are just a couple of examples that show the opportunity for CLNE across North America.

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