Clean Energy Fuels in Deal with GE

Clean Energy Fuels, which aims to establish a network of liquefied natural gas filling stations across the US, has bought two MicroLNG plants from GE Oil and Gas.

The filling stations are aimed at large industrial vehicles – trucks. Clean Energy expects to complete approximately 70 LNG stations by the end of 2012, with more planned for next year. These, it says, willt serve the movement of goods along major transportation corridors throughout the US.

A statement from the company says "up to $200 million (€157m) in financing" is being provided for the MicroLNG plants, which are planned to be operating by 2015.

“The agreement announced today with GE is one of the most significant milestones in Clean Energy’s history,” said Andrew J. Littlefair, president and CEO of Clean Energy Fuels, in a joint statement.

“As the long-haul trucking industry begins its transition to natural gas, it will be critical to have a reliable supply of LNG. No other company is as uniquely qualified as GE to help address this need due to its vast experience in energy, technology innovations and financing capabilities. GE partnering with Clean Energy on these two facilities will not only help ensure an adequate LNG supply for our stations, but it is another confirmation that the transition to natural gas as a transportation fuel is gaining momentum.”

The new GE MicroLNG system to be used by Clean Energy will produce 250,000 gallons (946,000 litres) of LNG per day, or about 54 million DGEs (diesel gallon equivalents) per year. The new system will help reduce a fleet operator’s fuel costs by more than 25% compared to diesel fuel, the companies say.

Clean Energy is the largest provider of natural gas fuel for vehicles in the US. Its shares rose by about 10% on the announcement of the GE deal.