Gas Output Is Expected to Equate to 6 Million Diesel Gallon Equivalents Annually
PHOENIX - Leading solid waste operator Republic Services, Inc. (NYSE: RSG) has signed a renewable biomethane recovery agreement with Clean Energy Fuels Corp. (Nasdaq: CLNE) to process and sell renewable natural gas recovered from Republic’s Sauk Trail Hills Landfill site in Canton, Michigan.
Clean Energy will build a high-BTU landfill gas processing plant at Republic’s Sauk Trail Hills Landfill, which will produce renewable natural gas for injection into the natural gas pipeline system. The renewable natural gas will be distributed for vehicle fuel use to Republic natural gas fleets, Clean Energy customers and direct use by renewable power customers. The agreement provides Republic a beneficial use for landfill gas, and will also provide Republic with conventional natural gas vehicle fuel for use in Republic’s growing natural gas fleet. When the landfill-gas-to-energy processing facility is fully operational, output of clean, green bio-methane is expected to equate to 6 million diesel gasoline gallon equivalents annually. Production is expected to begin in early 2012.
Republic also, under other agreements, contracted Clean Energy to build, operate and maintain 14 compressed natural gas (CNG) refuse vehicle fueling stations and to provide Republic liquefied natural gas (LNG) refuse fleets in California with approximately 3 million gallons of LNG vehicle fuel per year.
Andrew J. Littlefair, Clean Energy President and CEO, said, “We are delighted with the opportunity to partner with Republic, the nation’s second largest solid waste company, in this new sustainable energy venture. This underscores and expands a major new business direction for Clean Energy, with the goal of supplying renewable natural gas fuel to tens of thousands of natural gas vehicles operating across America.”
“This is truly an innovative project that provides Republic with a beneficial use for our landfill gas and gives us the flexibility for use in Republic’s markets where it meets our growing natural gas fleet’s operational needs,” said Don Slager, president and COO of Republic.
Republic intends to use a portion of the sustainable bio-methane produced at the site to fuel its expanding fleet of natural gas, solid waste hauling trucks.In addition, Clean Energy expects to provide the Sauk Trail Hills bio-methane product to fleet customers in its national network of compressed natural gas vehicle fueling stations.
Renewable bio-methane gas is a by-product derived from the compression of the landfill waste and decomposition. Used for vehicle fuel, environmentally friendly landfill gas generates up to 88 percent less greenhouse gas emissions than diesel fuel or gasoline.
About Clean Energy Fuels
Clean Energy (Nasdaq: CLNE) is the largest provider of natural gas fuel for transportation in North America and a global leader in the expanding natural gas vehicle market. It has operations in CNG and LNG vehicle fueling, construction and operation of CNG and LNG fueling stations, biomethane production, vehicle conversions and compressor manufacturing.
Clean Energy fuels over 18,300 vehicles at more than 200 strategic locations across the United States and Canada with a broad customer base in the refuse, transit, trucking, shuttle, taxi, airport and municipal fleet markets. It owns and operates a landfill gas facility in Dallas, Texas, that produces renewable methane gas, or biomethane, for delivery in the nation’s gas pipeline network. It owns and operates LNG production plants in Willis, Texas and Boron, Calif. with combined capacity of 260,000 LNG gallons per day and that are designed to expand to 340,000 LNG gallons per day as demand increases. BAF Technologies, Inc., a wholly owned subsidiary, is a leading provider of natural gas vehicle systems and conversions for taxis, limousines, vans, pick-up trucks and shuttle buses. IMW Industries, Ltd., a wholly owned subsidiary based in Canada, is a leading supplier of compressed natural gas equipment for vehicle fueling and industrial applications with more than 1,000 installations in over 20 countries. www.cleanenergyfuels.com