Clean Energy Fuels sold a majority interest in the McCommas Bluff biomethane production facility to minority interest owner Cambrian Energy. The interest was sold for $40.6 million to Cambrian Energy, which had partnered with Clean Energy on the Dallas-Texas-based project in 2008.
Clean Energy will receive approximately $3 million in additional compensation pending further performance tests of the McCommas Bluff facility, which will be completed in early 2015. Clean Energy will continue to have the right to market and sell biomethane produced at the facility under its Redeem renewable natural gas fuel brand.
“Buying the McCommas biomethane facility allowed Clean Energy to gain a valuable foothold in the renewable natural gas business,” said Harrison Clay, president of Clean Energy’s renewables division. “We are extremely proud of what we have accomplished at the project over the past six years.”
Clean Energy also recently started production at its new biomethane facility in North Shelby, Tennessee, and added an additional 12 third-party-owned biomethane production sources to its portfolio of Redeem natural gas fuel supply.
Redeem is currently available throughout Clean Energy’s public natural gas fueling stations in California. Biomethane is a renewable natural gas made entirely from organic waste. Methane is captured and extracted from organic waste sources like landfills and farms before being processed into a natural gas fuel. Redeem is up to 90% cleaner than gasoline and diesel, according to Clean Energy.
“We have successfully leveraged our success at McCommas into a greater knowledge of the entire supply chain and established a leadership position in the RNG fuel market,” said Clay. “With McCommas remaining an RNG supplier, we will be able to focus our RNG business on Clean Energy Renewables' core strength – marketing and selling alternative fuels.”