Newport Beach-based Clean Energy Fuels Corp. (Nasdaq: CLNE) and its largest shareholder, Total S.E.,have agreed on a memorandum of understanding to create a 50/50 joint venture to develop carbon-negative renewable natural gas production (RNG) facilities in the U.S.
It also provides for credit support to build additional downstream RNG fueling infrastructure, Clean Energy said in a statement today.
Total will provide $50 million and Clean Energy $30 million for the proposed joint venture and Total will be providing credit support of $65 million to support Clean Energy development in the RNG value chain, including $45 million for contracted RNG fueling infrastructure, the statement said.
Separately, Clean Energy Fuels said that it will work with BP Products North America Inc., a subsidiary of BP p.l.c. (NYSE: BP), to develop, own and operate new renewable natural gas (RNG) facilities at dairies and other agriculture facilities that will produce one of the cleanest fuels in the world.
Shares in Clean Energy rose 8% to $5.94 apiece for a market cap of $1.2 billion after the agreements were announced.