Strategic Partnership for Sustainable Growth
Clean Energy Fuels Corp. (Nasdaq: CLNE) has entered a six-year $300 million senior secured term loan agreement with Stonepeak, a leading infrastructure investment firm, with an additional $100 million commitment available.
Accelerating Renewable Natural Gas Infrastructure
The financing will enable Clean Energy to repay existing debts and fund new renewable natural gas (RNG) production facilities, emphasizing growth in heavy-duty truck market fueling infrastructure.
Driving Decarbonization and Reducing Emissions
Clean Energy, known for supplying RNG to numerous fleets, plans to utilize the funds for RNG production facilities nationwide, contributing to the reduction of transportation sector emissions and supporting the energy transition.
Clean Energy’s Senior Vice President, Clay Corbus, expressed excitement about the partnership, emphasizing the timely financing as the company anticipates increased demand due to Cummins’ upcoming 15-liter natural gas engine. Stonepeak’s Senior Managing Director, Michael Bricker, highlighted RNG as a crucial part of decarbonization infrastructure, emphasizing its practicality and affordability in the transportation sector.
Financing Terms and Green Initiatives
The six-year term loan, with a 9.5% annual interest rate, offers Clean Energy flexibility during the initial two years to pay up to 75% of the interest in kind. Clean Energy’s RNG projects, including those at dairy farms, align with efforts to lower U.S. greenhouse gas emissions. The financing comes at a pivotal time as Clean Energy expands its RNG production and fueling infrastructure, aligning with the industry’s anticipation of Cummins’ enhanced natural gas engine, poised for commercial launch in 2024.
The collaboration underscores Clean Energy’s commitment to sustainable practices, contributing to the reduction of greenhouse gas emissions and advancing the adoption of renewable energy solutions.
Source：businesswire.com
