Orange County Business Journal

Clean Energy Secures Another $150M, Shares Up

Chris Casacchia Thursday, August 25, 2011

Seal Beach-based Clean Energy Fuels Corp., a natural gas fueling stations developer and operator, has secured $150 million in funding from three Asian investment funds.

With the latest investment, Clean Energy has raised $300 million in the last month as it aims to provide a low-cost, low-carbon American alternative to diesel fuel.

The company develops and runs natural gas stations near airports, utility companies, universities, city yards and other places they’re likely to see a lot of use.

In mid July the Business Journal reported Clean Energy received a $150 million investment from Chesapeake Energy Corp.

The investment was for some 150 liquid natural gas fueling stations at Pilot-Flying J Travel Centers across the U.S. to form what Clean Energy is calling “America’s Natural Gas Highway.”

The latest investments come from Springleaf Investments Pte. Ltd., a unit of Temasek Holdings Pte. Ltd.; Lionfish Investments Pte Ltd, a fund managed by Seatown Holdings International Pte. Ltd; and Greenwich Asset Holding Ltd, a unit of RRJ Capital Master Fund I L.P.

The money will be used for the construction and operation of liquefied natural gas and compressed natural gas fueling stations. The effort includes marketing, purchasing delivery trucks and hiring management and maintenance personnel, the company said.

Springleaf and Lionfish are both based in Singapore.

Temasek Holdings is one of the largest sovereign wealth funds in that country.

Under the deal, Clean Energy convertible debt, which carries an interest rate of 7.5%, is due in 2016.

The debt is convertible to Clean Energy’s common stock at $15 per share.

The investment, subject to customary closing conditions, is expected to be finalized this month, officials said.

Investors sent Clean Energy shares up more than 3% in late morning New York trading on news of the investment to a market value of $930 million.

Legendary oilman and corporate raider T. Boone Pickens started Clean Energy as a tiny part of his Dallas-based Mesa Petroleum in the late 1980s. He split it off in the late 1990s.