Clean Energy

Clean Energy Contracts with Fair Oaks Dairy Affiliate to Build & Operate a New Natural Gas Fueling Station to Support a CNG Truck Fleet Set to Haul 90 Million Gallons of Milk per Year


Source: Clean Energy

— Fleet Will Use More Than 1.5 Million Gallons of CNG Per Year —

SEAL BEACH, Calif.--(BUSINESS WIRE)-- Renewable Dairy Fuels, an affiliate of major Indiana milk producer Fair Oaks Dairy, has contracted with Clean Energy Fuels Corp. (Nasdaq: CLNE) to build and operate a new compressed natural gas (CNG) fueling station (Fair Oaks Station) that will dispense CNG fuel to power the initial fleet of 42 CNG milk-hauling trucks that the dairy plans to deploy later this year. The Renewable Dairy Fuels CNG trucks will transport milk to processing plants owned by Kroger Co. in Indianapolis, Indiana, Murphysboro, Tennessee, and Winchester, Kentucky.

Set to open in the fall of 2011, the Fair Oaks Station will also have public access and will be located near the dairy farm adjacent to Interstate 65 in Fair Oaks, Indiana — about 70 miles south of Chicago. The Fair Oaks Station will supply the Fair Oaks CNG milk-hauling truck fleet, as well as other CNG vehicles operating in the area. A second CNG station is planned for late 2011 in Southern Indiana adjacent to the Kentucky border along Interstate 65.

Renewable Dairy Fuels also plans to produce biomethane from dairy cattle waste and pipe the biogas directly to the Fair Oaks Station for onsite conversion to CNG vehicle fuel. The biogas will be made available for vehicle fuel use once the conditioning facility for the biogas is completed, which is anticipated within 12 to 18 months.

The dairy’s CNG truck fleet will transport 53 loads of milk per day, which equates to 7.5 million gallons a month or 90 million gallons of milk per year. The trucks will replace diesel-powered models, and are projected to use more than 1.5 million diesel gallon equivalents of CNG per year.

James Harger, Chief Marketing Officer, Clean Energy, said, “Fair Oaks Dairy is a leading proponent of sustainable farming practices and their use of natural gas and renewable biogas to power natural gas trucks is a model that can be replicated by dairy operations throughout America. We are delighted to have this opportunity to work with Fair Oaks as they move to control fuel costs in a volatile energy environment, reduce dependence on foreign oil and curb the global warming impact of their fleet operations.”

About Clean Energy Fuels — Clean Energy (Nasdaq: CLNE) is the largest provider of natural gas fuel for transportation in North America and a global leader in the expanding natural gas vehicle market. It has operations in CNG and liquefied natural gas (“LNG”) vehicle fueling, construction and operation of CNG and LNG fueling stations, biomethane production, vehicle conversion and compressor technology.

Clean Energy fuels over 22,700 vehicles at 238 strategic locations across the United States and Canada with a broad customer base in the refuse, transit, trucking, shuttle, taxi, airport and municipal fleet markets. Clean Energy del Peru, a joint venture, fuels vehicles and provides CNG to commercial customers in Peru. We own (70%) and operate a landfill gas facility in Dallas, Texas, that produces renewable natural gas, or biomethane, for delivery in the nation’s gas pipeline network, and we plan to build a second facility in Michigan. We own and operate LNG production plants in Willis, Texas and Boron, Calif. with combined capacity of 260,000 LNG gallons per day and that are designed to expand to 340,000 LNG gallons per day as demand increases. NorthStar, a wholly owned subsidiary, is the recognized leader in LNG/LCNG (liquefied to compressed natural gas) fueling system technologies and station construction and operations. BAF Technologies, Inc., a wholly owned subsidiary, is a leading provider of natural gas vehicle systems and conversions for taxis, vans, pick-up trucks and shuttle buses. IMW Industries, Ltd., a wholly owned subsidiary based in Canada, is a leading supplier of compressed natural gas equipment for vehicle fueling and industrial applications with more than 1,200 installations in 24 countries.

Forward Looking Statements — This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, including statements about Fair Oaks Dairy’s annual fuel consumption, the rate of CNG truck procurement and deployment by Fair Oaks Dairy, the timing of the commencement and completion of construction of the Fair Oaks Station and the biogas conditioning facility, the construction of a second CNG fueling station in Southern Indiana and the future production and use of biogas as a vehicle fuel. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors including the demand for Fair Oaks Dairy’s products, availability, price and performance of CNG trucks relative to gasoline and diesel trucks, the price per gallon of CNG relative to diesel and gasoline, permitting or other delays encountered during the construction of the Fair Oaks Station or the biogas conditioning facility and the ability to produce pipeline quality CNG from the dairy cattle waste. The forward-looking statements made herein speak only as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.



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