California’s Low Carbon Fuel Initiative May Provide Opportunities For Clean Energy Fuels (CLNE)

While California’s low carbon fuel initiative has both conventional fuel companies and ethanol companies in a tizzy, Clean Energy Fuels Corp sees it as an opportunity. That’s because the standard encourages the use of four fuel types: : hydrogen, electricity, natural gas and biomethane. Of these four fuels, Clean Energy Fuels provides two: natural gas and biomethane. The company owns two LNG plants with a total combined capacity of 260,000 gallons per day, and a biomethane plant.

In an article posted on, Clean Energy Fuels’ president and CEO commented on the new regulations:

"This regulation confirms the value of using domestic natural gas as a low carbon alternative fuel for transportation as California and the nation seek to clean the air and reduce dependence on imported petroleum," said Andrew J. Littlefair, Clean Energy president and CEO. "Domestic CNG and LNG already exceed the state’s 2020 goal of 10 percent carbon reduction."

"Natural gas fuel is produced from America’s abundant supply of natural gas, estimated to equal 118 years of current demand based on known domestic resources, and more is being discovered across the country," Littlefair noted. "Together with broader public awareness of the benefits of natural gas fuel and current and new government incentives from local to federal levels, the LCFS regulation in California should increase the use of natural gas vehicles in the state and around the country."

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