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. Total has agreed to purchase up to 50.8 million shares of Clean Energy’s common stock for US$83.4 million, to become Clean Energy’s largest stockholder with 25% ownership of Clean Energy’s outstanding shares of common stock. The transaction is subject to, among other things, Clean Energy obtaining the approval of its stockholders’ meeting.
With support from Total, Clean Energy also plans to launch an innovative leasing programme aimed at placing thousands of new natural gas heavy-duty trucks on the road and fuelling at Clean Energy stations. This programme will allow fleets to begin driving heavy-duty trucks with the clean engines at no increased cost compared to the diesel alternative, while also guaranteeing a discounted natural gas fuel price compared to diesel. Total intends to provide up to US$100 million of credit support for the programme, which the companies expect to launch in 3Q18.
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. With operations on five continents, Total has vast experience with natural gas making it one of the largest leaders all along the natural gas value chain, including its LNG positions in the US.
“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 US, 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.”
“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 programme should expedite the adoption of natural gas as the most environmentally friendly fuel for the trucking industry.”
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/10052018/total-and-clean-energy-fuels-corp-enter-strategic-agreement/