Total to make $83mn equity investment in Clean Energy Fuels Corporation
The deal is part of the French supermajor’s strategy to expand its low carbon businesses.
Total and the Clean Energy Fuels Corporation have announced that the two companies have entered into a broad strategic agreement to drive the deployment of new natural gas heavy-duty trucks.
France’s Total has agreed to purchase up to 50.8mn shares of Clean Energy’s common stock for $83.4mn, to become Clean Energy’s largest stockholder with ownership of 25% of the firm’s outstanding shares. This transaction is subject to Clean Energy obtaining stockholder approval.
Clean Energy, with support from Total, also plans to launch an innovative leasing programme that is intended to place thousands of natural gas heavy-duty trucks on the road which will be fuelled at Clean Energy stations.
This programme will allow fleets to begin driving heavy-duty trucks with one of the cleanest engines in the world at no increased cost compared to the diesel alternative. Total intends to provide up to $100mn of credit support for the programme, which the companies expect to launch in Q3 2018.
“Customers and regulators around the world are demanding cleaner transportation alternatives, particularly in the heavy-duty market,” said Patrick Pouyanné, chairman and CEO of Total. “Natural gas can become the fuel of choice. Total believes there is a strong development opportunity in the natural gas for transportation market in particular in the United States which benefits from unique giant low-cost gas resources. Total is looking forward to partnering with Clean Energy to accelerate the remarkable innovation capacities of this company.”