HASLET & DALLAS, Texas - Clean Energy Fuels Corp. (NASDAQ: NASDAQ:CLNE) has expanded its renewable natural gas (RNG) fueling infrastructure with two new stations in Texas, catering to heavy-duty truck fleets and other vehicles. The stations, located near North Fort Worth and South Dallas, provide access to RNG, a fuel with a carbon-negative rating, aligning with the growing demand for sustainable transportation solutions.
The North Fort Worth station, adjacent to Alliance airport, and the South Dallas station, near major highways, are positioned to serve a significant number of distribution centers. These facilities join Clean Energy's network of over 600 stations, arriving at a time when RNG is gaining popularity among fleets aiming to reduce carbon emissions. The stations offer fast-fill dispensers and private overnight fueling posts to accommodate heavy-duty vehicles efficiently.
Additionally, Clean Energy is investing in RNG production at U.S. dairy farms, contributing to the reduction of greenhouse gas (GHG) emissions in both agriculture and transportation sectors. The company's efforts include a facility at Del Rio Dairy in Friona, TX, which started producing RNG in 2023, and plans for another at South Fork Dairy in Dimmitt, TX.
The adoption of RNG as a fuel is supported by the positive response to the Cummins (NYSE:CMI) X15N natural gas engine, which is expected to be commercially available later in 2024. The engine is currently undergoing testing by notable fleets such as Walmart (NYSE:WMT) and UPS. RNG offers a cleaner alternative to diesel, with the Dallas-Fort Worth area's transportation hub poised to benefit from these new fueling options.
This expansion shows Clean Energy's commitment to decarbonizing transportation by developing and delivering RNG. The company operates a vast network of fueling stations across the U.S. and Canada, as well as RNG production facilities, contributing to the reduction of climate-harming GHG emissions.
The information in this article is based on a press release statement from Clean Energy Fuels (TSX:EFR) Corp.
InvestingPro Insights
As Clean Energy Fuels Corp. (NASDAQ: CLNE) forges ahead with its expansion of renewable natural gas (RNG) infrastructure, the company's financials and market performance provide a backdrop to its operational developments. Here are some insights from InvestingPro that shed light on Clean Energy's current financial health and market status:
InvestingPro Data indicates a market capitalization of $662.38 million, highlighting the company's moderate size in the energy sector. Despite a challenging environment, Clean Energy has managed a revenue growth of 8.47% over the last twelve months as of Q1 2023. This suggests a positive trajectory in terms of sales, even as the company navigates a volatile market, as evidenced by a 1-Year Price Total Return of -47.06%.
An InvestingPro Tip worth noting is that Clean Energy operates with a moderate level of debt, which could provide some financial flexibility as it continues to invest in RNG production facilities and fueling stations. However, it's important to acknowledge that analysts have revised their earnings downwards for the upcoming period, and the company's gross profit margins are considered weak at 18.99%.
For investors and industry watchers interested in a deeper analysis, there are additional InvestingPro Tips available on the company's profile. By using the coupon code PRONEWS24, readers can receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 7 InvestingPro Tips for Clean Energy Fuels Corp. These insights could be invaluable for making informed decisions regarding investments in the sustainable energy sector.
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