- Corporate News
Total SA and Clean Energy sign broad strategic agreement to boost deployment of natural gas heavy-duty trucks
Total SA and Clean Energy Fuels Corp. have entered into a broad strategic agreement to drive the deployment of new natural gas heavy-duty trucks. The French oil and gas company Total, the fourth largest in the world, has agreed to purchase up to 50.8 million shares of Clean Energy’s common stock for USD 83.4 million, to become Clean Energy’s largest stockholder with ownership of 25% of Clean Energy’s outstanding shares of common stock.
This transaction is subject to, among other things, Clean Energy obtaining the approval of its stockholders’ meeting, which was originally scheduled for 30 May 2018 and which Clean Energy is announcing will be postponed to 8 June 2018.
Clean Energy Fuels Corp. is the leading provider of natural gas fuel and renewable natural gas (RNG) fuel for transportation in North America with a network of more than 550 stations across North America that it either owns or operates.
Clean Energy also owns natural gas liquefication facilities in the U.S. states of California and Texas, which produce LNG for the transportation and other markets.
Clean Energy, with support from Total, also plans to launch an innovative leasing program that is intended to place thousands of new natural gas heavy-duty trucks on the road and fueling at Clean Energy stations. As presently contemplated, this program will allow fleets to begin driving heavy-duty trucks with the cleanest engine in the world at no increased cost compared to the diesel alternative, while also guaranteeing a discounted natural gas fuel price to diesel fuel price. Total intends to provide up to USD 100 million of credit support for the program, which the companies expect to launch in the third quarter.
“Customers and regulators around the world are demanding cleaner transportation alternatives, particularly in the heavy-duty market,” said Patrick Pouyanné, chairman and CEO of Total. “Natural gas can become the fuel of choice. Total believes there is a strong development opportunity in the natural gas for transportation market in particular in the United States, which benefits from unique giant low-cost gas resources. Total is looking forward to partnering with Clean Energy to accelerate the remarkable innovation capacities of this company.”
Promoting the use of natural gas and increasing its share in Total’s overall output are part of Total’s integrated strategy to expand its low carbon businesses. Total has vast experience with natural gas, with operations on five continents, making Total one of the world’s largest leaders all along the natural gas value chain, including with liquified natural gas (LNG) positions in the U.S.
“There couldn’t be a better endorsement for the future of natural gas heavy-duty trucking in North America than for Total, one of the largest energy companies in the world, to step up with this investment,” said Andrew J. Littlefair, CEO and president of Clean Energy. “Being a European-based company, Total is all too aware of the opportunity to transition to cleaner alternative fuels. Launching the financing program should expedite the adoption of natural gas as the most environmentally friendly fuel for the trucking industry.”