HAM Group of Spain, the developer of a growing European LNG filling station network and a major truck fleet owner, is expanding activities in Peru with the Peruvian subsidiary of HAM signing an agreement for the delivery of new Volvo LNG-powered trucks.
Clean Energy Fuels Corp., the US producer of natural gas make from waste, said its latest facility at Victory Farms Dairy in South Dakota has successfully completed construction and is injecting pipeline-quality gas into the interstate natural gas infrastructure.
The Victory Farms two-digester facility is utilizing the manure of 6,000 Jersey cows, which could process approximately 120,000 gallons of manure each day to produce an estimated 900,000 gallons of negative carbon-intensity Renewable Natural gas (RNG) annually.
The RNG produced at the facility in Revillo, South Dakota, will find its way to Clean Energy’s fueling network, helping commercial fleets reduce their greenhouse gas (GHG) emissions significantly and immediately.
Clean Energy currently operates over 600 fuel stations around North America that provide fuel and services to customers.
Logistics customers
Its fixed customer bases includes some of the largest logistics operators like UPS and Amazon, many transit agencies including those in New York City and Los Angeles, and dozens of waste companies including WM, Republic Services and Waste Connections.
Developed in partnership with Dynamic Renewables and financed through one of Clean Energy’s production joint ventures, the construction costs of the RNG facility in South Dakota, including the build of the manure collection facility, digestors and the processing plant, totalled around $26 million.
Clean Energy, which is based in Newport Beach, California, said it was also in the process of filing the necessary applications to generate federal and state environmental credits.
“We are committed to working with dairies to bring more RNG into the market,” said Clay Corbus, senior Vice President of Renewables at Clean Energy
“Projects like Victory Farms will provide us the fuel to help decarbonize heavy-duty transportation while simultaneously providing an additional revenue stream for dairy owners and helping with their waste management,” Corbus explained.
“With fleets quickly learning that RNG is a proven solution readily available now, it is perfect timing that Victory Farms and the other dairy facilities are coming online to meet the growing demand,” Corbus stated.
GHG emissions
Agriculture accounts for nearly 10 percent of US GHG emissions and the transportation sector accounts for another 28 percent, according to the US Environmental Protection Agency.
Capturing methane from farm waste lowers these emissions and RNG produced by that captured methane and used as a transportation fuel, significantly lowers GHG emissions on a lifecycle basis when compared to diesel fuel.
This allows RNG to be one of the only fuels to receive a negative carbon-intensity score based on the reduction of emissions at the source and at the vehicle.
“Victory Farms is part of an industry that is uniquely positioned to have the opportunity to produce such a sustainable and valuable by-product from everyday waste,” said the owners of Victory Farms.
“We are incredibly proud of what we are doing here, and that we’ve been able to partner with Clean Energy to help create a healthier planet,” they added.
Stonepeak, the New York-based investment and asset management firm, has given a $300 million loan to California-based company Clean Energy Fuels Corp., the operator of one of America’s largest natural gas fuelling station networks.
The loan to Clean Energy Fuels, listed on the Nasdaq global exchange, is in the form of a senior secured term loan for a six-year period and will help with expansion plans.
“In addition to repaying existing loans, the financing from Stonepeak will provide Clean Energy with capital for new renewable natural gas (RNG) production facilities, as well as the expansion of the company’s fuelling infrastructure targeting the heavy-duty truck market,” said Clean Energy, based in Newport Beach, California.
The company currently provides RNG made from waste in the form of LNG and compressed natural gas (CNG) to hundreds of vehicle fleets every day.
Timely loan
“Stonepeak is one of the most well-respected infrastructure investment firms operating in the energy transition space and we’re excited to partner with them as we grow our RNG business,” said Clay Corbus, Senior Vice President for strategic development at Clean Energy.
“This financing agreement is very timely as we continue to see more RNG development opportunities come our way, and as we anticipate building additional stations to accommodate increased demand due to the arrival of the Cummins 15-liter natural gas engine,” the company explained.
Stonepeak, which has around $58 billion under management, said it regards RNG as a “practical and affordable energy solution for the transportation sector” and with good tailwinds.
“This, combined with its ability to curb fugitive methane emissions, makes it a critical part of decarbonization infrastructure, in our view,” said Michael Bricker, Senior Managing Director at Stonepeak.
“With its proven asset base and operating history, we believe that Clean Energy has differentiated itself both within this space and relative to earlier stage verticals and other platforms pursuing the energy transition. We look forward to partnering with the Clean Energy team in supporting the company’s next phase of growth,” Bricker explained.
Texas RNG
Clean Energy noted that it was currently developing a portfolio of RNG production facilities at dairy farms across the country.
The first project is producing RNG in Texas and supplying it to the transportation market in Oregon through the state’s low-carbon fuels program.
Clean Energy is also expanding its RNG fuelling infrastructure, which currently includes over 600 stations across North America.
This comes at a time when engine-maker Cummins Inc. is testing a new larger natural gas engine for heavy-duty trucks with companies like Walmart, Werner, Knight Swift and UPS.
“These fleets are experiencing an improved fuel economy with more torque and power than previous models, while at the same time dramatically reducing greenhouse-gas (GHG) and NOx emissions compared to diesel,” said the company.
“The 2024 commercial launch of the Cummins X15N engine is much anticipated by the industry,” it added.
The Stonepeak term-loan bears interest at 9.5 percent per annum. During the first two years, Clean Energy may elect to pay up to 75 percent of the interest in kind.
“In connection with this transaction, Clean Energy issued warrants to Stonepeak for the purchase of 10 million shares of common stock with an exercise price of $5.50 per share and 10 million shares of common stock with an exercise price of $6.50 per share,” said Clean Energy.
“The warrants expire on June 15, 2032 and are exercisable at any time after December 12, 2025,” the company added.
Scandinavian Biogas, a Swedish producer of BioLNG has signed a long-term supply agreement with German filling station owner Alternoil GmbH, which has 40 LNG stations in its network.
Grupo HAM, the Spanish company that has opened more than 100 filling stations and now operates around 25 percent of existing facilities in Europe for LNG-powered trucks and other vehicles, has launched a new concept of mobile and transportable service stations.
The group’s new mobile unit, which is called EDUX, has been developed by its subsidiary HAM Criogénica, together with HAM’s research and development team who have been in charge of the design and construction.
The EDUX service station allows owners and operators to store and supply LNG for all types of trucks and heavy vehicles, keeping the liquid subcooled and adapting to the optimal temperature of the different brands.
The mobile units offer fast re-fuelling for Volvo, Scania or Iveco LNG-powered trucks. At the same time, the units allow fuel filling for compressed natural gas in cars, light vehicles and trucks.
HAM’s own network of LNG and CNG facilities is expanding in a growing number of countries with more than 30 in Spain and the others spread around the EU in France, Belgium, Italy and the Netherlands.
The group has also expanded its network by opening several natural gas stations in the South American nations of Chile and Peru.
The new mobile unit LNG filling station concept has 60,000 litres (60 cubic metres) of LNG capacity and works at low pressures (2-3 bar), has a submerged pump and can supply up to 12,000 kg/h of LNG and 300 Kg/h of CNG, with a capacity storage of 7,000Kg of CNG.
“The gas station has two ‘on the fly’ conditioning systems and has two LNG dispensers and two CNG dispensers, with an innovative nozzle, designed by HAM, with a 'no frost' system and a double anchoring system and closing, avoiding leaks or losses of liquid, in addition to facilitating disconnection without emissions of gas into the air,” explained HAM in a statement.
The selection of fuel and payments can be made independently at each of the dispensers, using any debit or credit card or the HAM Card for professional users.
“EDUX is a modern mobile service station, which is monitored remotely, by registering different parameters, always guaranteeing its perfect operation and allowing to quickly solve any incident,” added HAM
“At Grupo HAM, we continue to work and innovate, in direct contact with our customers, to develop high-quality and reliable advances in the improvement of CNG-LNG logistics infrastructures and services, taking respect for the environment as a starting point,” stated the company.
Southern California Gas Co. (SoCalGas), based in Los Angeles and owned by the Louisiana Cameron LNG plant operator, Sempra Energy, has agreed to pay around $1.1 billion in three settlement agreements stemming from the methane leak in 2015 at the SoCalGas Aliso Canyon natural gas storage facility.
French energy major Total and one of its fuel subsidiaries have started construction of a multiple-energy trucking station at the new A1 business park in Deventer in the Netherlands.