Clean Energy Receives Up to $400M from Stonepeak for RNG Infrastructure Expansion

Clean Energy Fuels has announced the signing of a 6-year $300 million senior loan secured from Stonepeak. The credit agreement also provides a two-year delayed draw term loan commitment for an additional $100 million. Clean Energy will allocate a portion of the financing to repay existing loans.

“Stonepeak is a well-respected infrastructure investment firm operating in the energy transition space and we’re excited to partner with them as we grow our RNG business,” said Clay Corbus, SVP for Strategic Development, Head of Renewable Fuels, 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 Cummins 15-liter natural gas engine.”

In addition to paying off current loans, Stonepeak’s funding will provide Clean Energy with capital to develop new RNG production facilities and expand its fueling infrastructure for the heavy-duty transport market. Currently, Clean Energy provides RNG for hundreds of fleets in the form of compressed natural gas (CNG) and LNG. Fueling heavy-duty fleets with CNG and LNG allows Clean Energy to decarbonize its large vehicles at low-cost.

Clean Energy is developing a portfolio of RNG production facilities for the United States’ dairy industry. The first project is producing RNG in Texas and supplying it to Oregon’s transportation market through the state’s low-carbon fuels program. The company is also expanding its RNG fueling infrastructure, which is comprised of over 600 stations across North America.

“We see RNG as a practical and affordable energy solution for the transportation sector, with tailwinds supporting increasing adoptability. 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.”

RNG, produced with captured methane and used as transportation fuel, lowers greenhouse gas emissions on a lifecycle basis when compared to diesel. The combination of RNG fuel and the 2024 launch of the Cummins X15N engine will allow Clean Energy to decarbonize heavy-duty transport fleets on a large scale.