Landi Renzo and Clean Energy Fuels Corp. will form a new standalone company that will supply natural gas compressors globally to meet the growing demand of transportation fleets that seek solutions to replace diesel.
The two companies’ combined their compressor manufacturing subsidiaries to form the company, which also have strong presences in global markets unique to the other. Landi Renzo’s SAFE has a strong presence in Europe and Asia, and Clean Energy Compression is established in the North and South America markets.
“This newly formed compressor company will be uniquely positioned to take advantage of the trend towards natural gas with a global footprint and a great product offering,” said Cristiano Musi, who is currently Group CEO of Landi Renzo and will also be the CEO of the new company.
Landi Renzo will own 51% of the new company and take over operational management, while Clean Energy will retain a 49% ownership, according to a release. Closing is anticipated to occur before the end of the year.
Strict environmental policies are being adopted around the world to address air quality problems caused by polluting NOx emissions, a release from both companies’ stated. Improved natural gas engine technology and a more abundant supply of renewable natural gas allows some large vehicles to reduce their emissions by 90% and cut climate-changing greenhouse gases by 70% versus diesel.