Amazon’s newly announced agreement with the Clean Energy Fuels to provide renewable natural gas (RNG) raises several questions. Amazon has plans to fuel some of the vehicle fleets with Clean Energy’s low and negative carbon RNG. The most interesting thing is that Amazon could end up owning 19.99% of Clean Energy’s common stock on a fully diluted basis.
It is expected that nearly $45 million to $60 million will be spent by Clean Energy Fuels by the end of 2021 to fuel stations to support Amazon’s RNG demands. Amazon will get access to RNG at 27 Clean Energy fueling stations across 15 states and 19 non-exclusive new or upgraded stations with capital expenditures.
Clean Energy’s network of 550 existing natural gas stations will be built in 42 states. Andrew Littlefair, CEO and President of Clean Energy Fuels, said, “If the world is really going to tackle the issue of climate change, all of us need to find solutions that work both environmentally and economically, and that is exactly what this agreement supports.”
The spokesperson told FreightWaves, “Amazon is excited about introducing new sustainable solutions for freight transportation, including renewable natural gas, electric and other sustainable technologies.”