Clean Energy Fuels on Thursday announced more agreements to supply renewable natural gas (RNG) for freight and refuse trucks at various companies.
Adopt-A-Port program spurs RNG adoption
The Adopt-A-Port initiative is run by Clean Energy and Chevron Corp. (NYSE: CVX). Chevron provides funding and supplies RNG to Clean Energy’s stations near the ports of Los Angeles and Long Beach.
Qualified trucking fleets and individual owner-operators can get financing to help them purchase natural gas-powered vehicles or convert diesel trucks to run on natural gas. Chevron has allocated $28 million in financing to the program. Trucks signed on to the program agree to fill their tanks with Clean Energy (NASDAQ: CLNE) RNG.
The goal of the program is to reduce greenhouse gas emissions and air pollution near ports. RNG is increasingly fueling heavy-duty trucks, especially in states such as California with a low-carbon fuel standard. The economics of fueling with RNG are improving because of diesel’s volatility and rising costs and as companies prioritize reducing emissions in their supply chains.
In a release, the Newport Beach, California, RNG provider said that more than 200 heavy-duty trucks have been contracted through the program, and there are more than 400 being processed.
“Every truck deployed through Adopt-A-Port results in less impacts on local communities by removing diesel trucks from the road. Diesel particulate emissions, which are known toxic air contaminants and contribute to cancer risk, are 100% eliminated. Emissions of NOx are reduced by 90% to 98%. Carbon emissions are reduced by 70% to over 300%. Engine noise is reduced by 90%,” Greg Roche, vice president of sustainability at Clean Energy, told FreightWaves.
Pacific Green Trucking signed a Clean Energy agreement for 1 million gallons of RNG that will power 61 new natural gas trucks.
Companies deploying an additional 46 RNG-fueled trucks through the program include NGL Logistics, TDS Logistics, Mortimer & Wallace, Pacific 9, Cota Capital American Pacific Forwarders, Arete Logistics, Paul Suh, Sang’s Express, Pacifica Trucks, Pacific Expressway, Yanxiu Li, IML Transport, Supra National Express and Atlas Marine, according to the release.
Additional RNG agreements
Clean Energy has been contracted to provide 52 additional RNG fueling bays for refuse trucks at Republic Services’ Anaheim, California, facility. Republic Services is also expanding its Huntington Beach, California, project to accommodate more RNG-powered refuse trucks and add fast-fill capabilities. It will then construct an additional adjacent RNG fueling station to fuel 30 more RNG trucks.
“Growth in natural gas heavy trucks has not met expectations over the last decade. But now it seems the stars are aligning to fuel rapid growth in many markets. Ever-increasing corporate sustainability initiatives have freight buyers looking for opportunities to reduce emissions from freight and logistics. And with investments in fueling infrastructure, available financing incentives and strong demand for new trucks, the future is bright for RNG to deliver,” said Tyler Cole, director of carbon intelligence at FreightWaves.
In California, Harrison Industries, Golden Empire Transit, MV Transit and Sacramento County, have all signed agreements with Clean Energy to provide more than 10 million gallons of RNG.
Branching out past California, Clean Energy has entered agreements with companies in Oregon, Texas, Ohio, Washington and New Jersey to provide heavy-duty trucks, refuse trucks and transit buses with RNG.
The RNG provider’s reach is even extending internationally to London and Ontario for refuse trucks.
Roche said that RNG, as an emission-reduction solution, has a “breadth and diversity” that applies to many applications in transportation.
“Demand for RNG will continue its rapid growth trajectory. We are in the early days of seeing corporate goals to reduce carbon turned into actual actions. Coupled with companies taking action is a growing awareness of how RNG can help companies achieve their net-zero goals faster and at lower cost than other options they consider,” Roche said.
WATCH: How do hydrogen and RNG fit into the future of trucking?